Economy · Jobs & pay · 30 October 2026
Government accepts Low Pay Commission minimum wage recommendations
The Government has accepted the Low Pay Commission's recommendations for new minimum wage rates from April 2027. The National Living Wage will rise to £13.21 for workers aged 21 and over. All announced wage increases represent a 3.9 per cent rise.
The Government announced that it has accepted the recommendations of the Low Pay Commission in full, setting out new minimum wage rates effective from April 2027. The decision follows a process of reflection and negotiation between the Commissioners, who based their proposals on available economic evidence.
Under the new arrangements, the National Living Wage for workers aged 21 and over will rise to £13.21. The minimum wage for 18-20 year olds will increase to £11.27, while the rate for 16-17 year olds and apprentices will rise to £8.31. Figures published with the announcement show that these changes represent a 3.9 per cent rise across the board, with the National Living Wage increasing by 50p.
Baroness Philippa Stroud, LPC Chair, noted that discussions with workers and employers reflected the tough economic headwinds being faced across the economy. She added: "Economic growth has been better than expected this year, but this growth is not leading to hiring."
The new rates are above the range of inflation forecasts for the period from April 2027 to March 2028. The Government aims to lower the age of eligibility for the National Living Wage to 18, a target it has been pursuing for 4 years. However, the recommended National Living Wage does not reach the target of two-thirds of median earnings.
The Accommodation Offset rate will also increase by 43p to £11.53. The 18-20 Year Old Rate sees a monetary increase of 42p, and the 16-17 Year Old Rate and Apprentice Rate see an increase of 31p. These figures apply from April 2027.
Written by StreetOwl from Low Pay Commission’s own announcement. It was drafted by StreetOwl’s own model, every figure and quotation was checked by code against the announcement, and it was read and approved by Michael Rossi before it went up. It says what was announced, not what anyone should do about it.
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