National Living Wage to rise to £13.21 an hour from April 2027: what it is worth a year
Budget 2026 says the National Living Wage will rise from £12.71 to £13.21 an hour on 1 April 2027. UKCalc's calculation: for someone working 37.5 hours a week, that is £975 a year more before tax.
What happened
In Budget 2026 on 28 October, HM Treasury announced that the National Living Wage will increase by 3.9% to £13.21 per hour on 1 April 2027, up from £12.71. It says this is equivalent to £910 more in gross annual earnings for a full-time worker on the National Living Wage.
On 1 April 2027, the National Living Wage will increase by 3.9% to £13.21 per hour, equivalent to an increase of £910 in the gross annual earnings of a full-time worker on the National Living Wage.
Status: Announced by the government
HM Treasury (GOV.UK) — Budget 2026 (HTML), 28 October 2026
The National Living Wage for workers aged 21 and over is £12.71 an hour from April 2026.
GOV.UK — National Minimum Wage and National Living Wage rates
HM Treasury's note to its £910 figure says it is the increase to the gross annual earnings of a full-time worker on the National Living Wage for 52 weeks. The note does not state the weekly hours.
HM Treasury (GOV.UK) — Budget 2026 (HTML), 28 October 2026
What is established, and what is not
- The National Living Wage will be £13.21 an hour from 1 April 2027.
- It is £12.71 an hour until then.
- The April 2027 rates for 18 to 20-year-olds, 16 to 17-year-olds and apprentices: UKCalc has not yet completed its second check of these figures.
Nothing in the right-hand column is established. It is listed so that what is confirmed cannot be read as covering it.
What it means
Nothing changes before 1 April 2027. From that date, employers must pay at least £13.21 an hour to workers aged 21 and over. Assuming a 37.5-hour working week for 52 weeks, UKCalc calculates the rise is worth £975 a year before tax. At 35 hours a week it is £910, the same as HM Treasury's figure; HM Treasury's note says its figure is for 52 weeks but does not state the weekly hours.
Who is affected
- Workers aged 21 and over paid the National Living Wage
- Employers paying the National Living Wage
Key numbers
Every figure below is a UKCalc calculation from the stated inputs, not a figure published by any source.
Assuming a 37.5-hour working week for 52 weeks, the rise from £12.71 to £13.21 an hour is worth £975 a year before tax. This is a UKCalc calculation, not an HM Treasury figure.
At 35 hours a week for 52 weeks, the same rise is worth £910 a year, the same as HM Treasury's figure. HM Treasury does not say which weekly hours it used, so this is a UKCalc calculation, not a confirmed explanation.
What UKCalc calculated
Extra annual pay from £12.71 to £13.21 an hour
£975 a year
- Method
- (£13.21 − £12.71) × 37.5 hours × 52 weeks.
- Inputs
- £12.71 an hour from April 2026 (GOV.UK, UKCalc registry)
- £13.21 an hour from 1 April 2027 (HM Treasury, Budget 2026)
- 37.5 hours a week, 52 weeks (illustrative)
- Assumptions
- Gross pay before income tax and National Insurance.
- Paid for 52 weeks at the same hours.
Extra annual pay at 35 hours a week
£910 a year
- Method
- (£13.21 − £12.71) × 35 hours × 52 weeks.
- Inputs
- £12.71 an hour from April 2026 (GOV.UK, UKCalc registry)
- £13.21 an hour from 1 April 2027 (HM Treasury, Budget 2026)
- 35 hours a week, 52 weeks (illustrative)
- Assumptions
- Gross pay before income tax and National Insurance.
- 35 hours is used only to compare with HM Treasury's £910; HM Treasury does not state its hours.
Assumptions and scope
- Gross pay before income tax and National Insurance.
- Paid for 52 weeks at the same hours.
- 35 hours is used only to compare with HM Treasury's £910; HM Treasury does not state its hours.
Change any of these and the result changes. They are stated so the figure can be checked rather than taken on trust. How UKCalc produces its figures: methodology.
UKCalc's interpretation
The section below is UKCalc's analysis. It is separated from the facts above deliberately: it is arguable, and the facts are not.
The annual value of the rise depends on the hours worked. HM Treasury's £910 matches a 35-hour week, but HM Treasury has not said that is the assumption it used.
UKCalc's reading of the evidence above, not a statement by any source.
Questions this answers
- What will the National Living Wage be in April 2027?
- How much is the National Living Wage rise worth a year?
- When does the National Living Wage go up?
Sources
- HM Treasury (GOV.UK) — Budget 2026 (HTML) · 28 October 2026
- GOV.UK — National Minimum Wage and National Living Wage rates
Statutory figures belong to the body that publishes them. UKCalc compiles and verifies them, and any calculation built on top is UKCalc's own — see the governed rates reference.