United Kingdom expected to raise minimum wage by nearly 4% in 2027

British Finance Minister John Healey is expected to announce plans to increase the National Living Wage by approximately 3.9% during Wednesday's budget announcement. If confirmed, the rate for workers aged 21 and older would rise from £12.71 to roughly £13.20 per hour.

The proposed changes would also affect younger workers, with the National Minimum Wage for those aged 18 to 20 expected to increase from £10.85 to approximately £11.27 per hour. This move would mark a shift from recent years, where minimum wage increases for younger employees typically outpaced those for older workers.

Some analysts and employers have suggested that higher relative rates for younger staff may contribute to rising youth unemployment. The UK's minimum wage remains among the highest in advanced economies relative to median earnings, following long-term government efforts to align it with two-thirds of median hourly pay.