The UK will raise the hourly minimum for workers aged 18 to 20 to £11.27 in April 2027, but the rate will remain below the National Living Wage for older workers.
The new rate takes effect April 1, 2027. The National Living Wage for workers aged 21 and older will be £13.21. The government said both rates are rising 3.9% and that it accepted the Low Pay Commission’s recommendations in full. The adult rate was set below the commission’s benchmark.
Labour’s 2024 manifesto pledged to end age bands so all adults would receive the same minimum wage. The budget sets the younger workers’ rate but gives no timetable for aligning it with the adult rate.
John Healey did not guarantee equal rates before the next election in a BBC interview on Sunday with Laura Kuenssberg. He said the question was “when” and “how fast.” Healey said ministers would weigh wage rises against possible effects on jobs and seek support from businesses and trade unions.
The government estimates the increases will benefit around 2.3 million workers. The Low Pay Commission said demand for young workers has slowed, and cited employer resilience and youth employment when considering larger increases for younger workers. It recommended pausing alignment while prioritizing youth employment.
The National Living Wage age threshold fell from 25 to 23 in 2021, then from 23 to 21 in 2024. The commission said it will publish its full annual report in the new year.
