Britain's minimum wage to rise nearly 4%, Times reports

Skyscrapers of the City of London financial district are reflected in a puddle following heavy rain, in London, Britain, September 8, 2026. REUTERS/Toby Melville Purchase Licensing Rights , opens new tab LONDON, Oct 26 (Reuters) - British finance minister John Healey will announce on Wednesday plans to increase the minimum wage ​by nearly 4%, the Times reported on Monday. Britain's National Living ‌Wage, which applies to those aged 21 and older, is expected to rise to about £13.20 ($17.63) an hour from £12.71 — an increase of 3.9%, the newspaper reported, ​without naming sources.

Sign up here. The report added that the National Minimum ​Wage, which applies to those aged 18, 19 and 20, ⁠will rise broadly in line with the rate for older ​workers — to around £11.27 an hour from £10.85. The finance ministry declined to comment ​on the report. If confirmed in Wednesday's budget announcement, those increases would take effect in 2027 and end a trend seen in recent years in which the ​minimum rate for younger workers has increased by more than that ​for older workers.

Britain's minimum wage is one of the highest among advanced economies ‌as ⁠a share of median earnings, following efforts by successive governments to lift it to two-thirds of median hourly pay. Some analysts and employers have previously pointed to the rate payable to younger workers as ​a cause of increasing ​youth unemployment . In April, ⁠the Low Pay Commission, which advises the government on minimum wage rises, said the National Living ​Wage would probably need to increase by around 3.7% ​in ⁠2027 to £13.18 an hour to keep up with how it expected average pay to rise.

In March, the government tweaked the commission's remit to ⁠give it more ​scope to take labour market conditions ​into account when setting the minimum wage for 18- to 20-year-olds. ($1 = 0.7487 pounds) Reporting by ​William James and David Milliken; Editing by David Goodman and Hugh Lawson Our Standards: The Thomson Reuters Trust Principles. , opens new tab Suggested Topics: United Kingdom Worker Rights X Facebook Linkedin Email Link Purchase Licensing Rights