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UK minimum wage rises to £13.20 in Budget: younger workers get less

Career

UK minimum wage rises in the Budget

Chancellor John Healey confirmed a 3.9% rise on October 28, 2026.

The new rates

£13.20 an hour for workers 21 and over

The adult rate rises from £12.71 an hour to £13.20 an hour.

The new rates

£11.27 an hour for workers aged 18 to 20

The younger rate rises from £10.85 an hour to £11.27 an hour.

Start date

New rates start in April 2027

Workers should check their April pay slips against the new floor.

Who gains

About 2.3 million workers gain

Healey said the rise covers 2.3 million of the lowest paid workers.

The gap

A £1.93 an hour gap stays

A 20-year-old will earn £1.93 less per hour than a 21-year-old.

The change

Slower progress for younger workers

The younger rate rose about 26% since Labour returned in 2024.

The pledge

One adult rate remains the goal

Labour pledged to remove age bands, but gave no date for it.

The advice

Low Pay Commission advised on rates

Its central estimate for 2027 was £13.18 for the adult rate.

Employers

Firms warn over hiring costs

Employers say higher wage bills make hiring harder.

Voluntary rate

Real Living Wage is higher, but voluntary

It pays £14.10 an hour, or £15.45 in London, by choice.

Summary

The bottom line

Pay rises in April 2027, but the age gap debate moves to next year.

Career

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