Updated 28 Oct 2026: the April 2027 rates are now confirmed. This story was first drafted with the Low Pay Commission's indicative range.
The new rates from 1 April 2027
| Rate | Now (since 1 April 2026) | From 1 April 2027 |
|---|---|---|
| National Living Wage (21 and over) | £12.71 | £13.21 |
| 18 to 20 | £10.85 | £11.27 |
| 16 to 17 and apprentices | £8.00 | £8.31 |
| Accommodation offset (per day) | — | £11.53 |
The government says the NLW rise is equivalent to an increase of £910 in gross annual earnings for a full-time worker on the NLW, and that the new rates are expected to benefit around 2.3 million workers.
The Low Pay Commission's own indicative central estimate for April 2027, published in April 2026, was £13.18. The confirmed rate is 3p above it. The 18 to 20 rate rises by the same 3.9%, so this year's increase doesn't narrow the gap between it and the adult rate.
Why this bites hard in care
Skills for Care's annual workforce report, published on 14 October 2026, shows how close care pay sits to the legal floor:
- in March 2026, the median hourly rate for independent-sector care and support workers was £12.60, only 39p above the NLW at the time (£12.21);
- 27% of those workers were paid at the "wage floor" (no more than the NLW plus 10p);
- 49% of all independent-sector workers, about 655,000 filled posts, were paid less than £12.71 just before it took effect;
- care workers with five or more years' experience earned on average only around 12p an hour more than those with less than a year.
Each NLW rise therefore lifts a large part of the pay bill at once, and squeezes the gap between new starters, experienced staff and senior carers.
What this means across settings
Residential, nursing, learning disability and supported living services will feel the rise across day shifts, waking nights and sleep-in arrangements. Sponsored staff must also stay above their visa salary requirement in every pay period.
What this means for your service
- Budget now for £13.21. Recalculate your April 2027 wage bill for staff aged 21 and over, including employer National Insurance and pension contributions.
- Decide on differentials early. If seniors and team leaders sit only pence above care workers, decide whether you'll keep the gap, and cost it.
- Use the numbers in fee talks. Councils set 2027/28 fees over the winter. Show them your modelled cost per hour or per bed at the new rate. The Budget contained no new adult social care money: see everything in the Budget for care providers.
- Check sleep-ins, on-call and the accommodation offset against minimum wage rules before April. See sleep-ins, nights and minimum wage rules.
- Tell staff the confirmed rates and when they start: 1 April 2027.
This is general information, not legal advice.
Sources
- HM Treasury, Budget 2026 (28 Oct 2026): https://www.gov.uk/government/publications/budget-2026-document/budget-2026-html (checked 28 Oct 2026)
- Low Pay Commission, LPC recommendations take the National Living Wage to £12.71 (26 Nov 2025): https://www.gov.uk/government/news/lpc-recommendations-take-the-national-living-wage-to-1271 (checked 27 Oct 2026)
- HMRC, Rates and thresholds for employers 2026 to 2027: https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2026-to-2027 (checked 27 Oct 2026)
- DBT, National Minimum Wage and National Living Wage: Low Pay Commission remit 2026 (16 Mar 2026): https://www.gov.uk/government/publications/national-minimum-wage-and-national-living-wage-low-pay-commission-remit-2026 (checked 27 Oct 2026)
- Low Pay Commission, consultation letter 2026 (1 Apr 2026): https://assets.publishing.service.gov.uk/media/69cb962b2d120d9d5ec0f2c0/2026_LPC_consultation_letter.pdf (checked 27 Oct 2026)
- HM Treasury, Chancellor letter to the Treasury Select Committee: Budget 2026 date (31 Jul 2026): https://www.gov.uk/government/publications/chancellor-letter-to-the-treasury-select-committee-tsc-budget-2026-date (checked 27 Oct 2026)
- Skills for Care, The state of the adult social care sector and workforce in England 2026, executive summary (14 Oct 2026): https://www.skillsforcare.org.uk/Adult-Social-Care-Workforce-Data/workforceintelligence/resources/Reports/National/The-state-of-the-adult-social-care-sector-and-workforce-in-England-2026-Executive-Summary.pdf (checked 27 Oct 2026)
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