In short
The Autumn Budget is on Wednesday 28 October 2026. For employers, the main payroll announcement to watch is the National Living Wage for April 2027. The Low Pay Commission's indicative range is £13.02 to £13.34 an hour, with a central estimate of £13.18, up from £12.71 now. Any changes to employer National Insurance, the Employment Allowance or tax thresholds would also be announced on the day.
The Chancellor, John Healey, will deliver his first Budget on Wednesday 28 October 2026, according to the Chartered Institute of Payroll Professionals. Budgets are where most of the next tax year's payroll changes are announced, so it's worth knowing what to look for before the day.
National Living Wage from April 2027
The government asked the Low Pay Commission to recommend the rates for 1 April 2027 by the end of October 2026, according to the Commission's 2026 remit. Two-thirds of median hourly earnings remains the key reference point for the National Living Wage.
To keep to that benchmark, the Commission estimates the National Living Wage would need to be between £13.02 and £13.34 an hour in April 2027, with a central estimate of £13.18, a 3.7% rise, according to its 2026 consultation letter. Those figures are indicative only. Last year, the rates were recommended in October and confirmed at the Budget.
| Rate | Now (from 1 April 2026) | April 2027 |
|---|---|---|
| National Living Wage (21 and over) | £12.71 | Indicative £13.02 to £13.34 |
| 18 to 20 year old rate | £10.85 | To be announced |
| 16 to 17 year old rate | £8.00 | To be announced |
| Apprentice rate | £8.00 | To be announced |
Current rates are from GOV.UK. Employers with lots of staff on or near the minimum wage, such as nurseries, care providers and hospitality, should budget for a rise of around 4% from April 2027, including the knock-on effect on employer National Insurance and pension contributions.
Other payroll announcements to watch
- Employer National Insurance: currently 15% above the £5,000 secondary threshold.
- Employment Allowance: currently £10,500 for eligible employers.
- Income tax and National Insurance thresholds: the personal allowance is £12,570.
- Statutory pay rates: the April 2027 rates for sick, maternity, paternity and other statutory pay.
- Benefits in kind: any updates to mandatory payrolling of benefits from April 2027.
All current figures are in our 2026/27 rates and thresholds guide, based on HMRC's rates and thresholds for employers.
What to do now
- List the staff whose pay is tied to the minimum wage, including apprentices and anyone with a birthday that moves them into a new age band before April 2027.
- Use our employer cost calculator to see how a rise to around £13.18 an hour changes the full cost of each role.
- Hold off on fixing April pay rises until the figures are confirmed.
We'll publish a summary of the confirmed payroll changes here after the Budget.
This article is general information based on official sources at the date of publishing, not legal or tax advice. Rules can change, so check the linked guidance or talk to us about your payroll.