The 2027 minimum wage figure is due any day: re-price next year's quotes and rota now

By Jason Sibley

The April 2027 minimum wage rates have not been announced at the time of writing (23 October 2026). A decision is expected soon. If you quote for work or schedule staff, you can prepare now. Nobody can know the outcome yet, so I won't guess.

This is general information, not legal, tax or payroll advice. For your own numbers, use the GOV.UK rates page, your accountant or payroll provider, and Acas for employment questions.

Where things stand

The current rates have applied since 1 April 2026. GOV.UK's rates and thresholds page confirms them, and the Low Pay Commission's 2026 report sets them out:

• National Living Wage (age 21 and over): £12.71 an hour
• Age 18 to 20: £10.85
• Age 16 to 17: £8.00
• Apprentice: £8.00

The Low Pay Commission (LPC) published its remit for the 2027 upratings on 16 March 2026. It calls two-thirds of median hourly earnings "the key reference point". The government expects the LPC's recommendations in October, and any new rates would apply from 1 April 2027.

What the Low Pay Commission's range means

The LPC expects the rate needed to stay at two-thirds of median hourly earnings to fall between £13.02 and £13.34, with a central estimate of £13.18. That would be a rise of 2.4% to 5.0% on the current rate, with a central estimate of 3.7%.

This is a projection, not a decision. The LPC says its estimates "should be treated with even more caution than usual". These figures cover the main National Living Wage rate. I don't have projections for the other rates, so don't guess them.

This worked illustration compares each point in the range with today's £12.71, using only the figures above, for one person working 30 hours a week:

| Scenario | Hourly rate | Rise per hour | Extra per week (30 hours) | |---|---|---|---| | Low | £13.02 | £0.31 | £9.30 | | Central | £13.18 | £0.47 | £14.10 | | High | £13.34 | £0.63 | £18.90 |

These amounts exclude employer National Insurance and pension. Your payroll provider can tell you what applies to you. If, for example, you had ten people on those hours, the weekly extra would be £93, £141 or £189. The cost adds up across staff and affects every quote that runs past April.

The real Living Wage is a separate thing

You may have seen headlines about a rise to £14.10. That is the voluntary real Living Wage. MoneySavingExpert reported on 15 October 2026 that it rose 65p to £14.10 an hour outside London and £15.45 in London.

Close to 17,000 employers have signed up, and accredited employers technically have until 1 May 2027 to pay it. It is not the legal minimum or a forecast of the April 2027 legal rate. Pay it if you choose to, but don't use it for the legal-minimum scenarios.

Re-price before the number lands

Prepare a template you can update once the rate is announced.

Add three columns

In your quote template and rota cost sheet, add low, central and high columns using the LPC range: £13.02, £13.18 and £13.34. When the confirmed figure arrives, replace the three columns with one. For a starting point, our guide to AI quotes and proposals covers building a quote template, and the weekly cashflow sheet guide shows where labour costs sit in your cashflow.

Find what runs past 1 April 2027

• [ ] List every quote you've sent that could be accepted or delivered after 1 April 2027
• [ ] List every fixed-price contract or retainer that runs past that date
• [ ] Note which ones have wording about price reviews or cost changes
• [ ] Flag those where labour is a large share of your cost

If a contract has no price-review wording, or you aren't sure what it allows, talk to your solicitor before trying to change terms. Don't assume you can pass the cost on.

Check the gaps above the minimum

If your newest starter is on the minimum and your most experienced person earns only a little more, a rise can narrow that gap. Decide in advance whether you'll adjust pay for people just above the minimum, so your quotes and rota use the same assumption.

Tell customers early

Give customers a short, polite note in good time to avoid a surprise invoice. Say costs may change from April and that you'll confirm once the rates are published. Our articles on where AI helps with labour costs and tax pressure and getting a cost sheet ready before the 28 October Budget cover related preparation. If you employ people, the people costs piece on day-one sick pay covers another cost to watch.

Where AI helps

AI can handle some of the tedious work, but it can get arithmetic wrong. Check every number by hand or in your spreadsheet before relying on it.

Rota to three-scenario cost table

I'm a small UK business owner. Below is my weekly rota with hours and hourly rates. Using ONLY the numbers I paste, build a table showing weekly labour cost today and at three hourly rates for the lowest paid staff: £13.02, £13.18 and £13.34. Show your working. Do not invent any figures, staff, hours or rates. Do not add employer National Insurance or pension unless I give you the rates. If anything is missing, write "MISSING: [what I need to add]" instead of guessing.

[paste rota here]

Customer price-change note

Draft a short, polite note to my customers in plain British English saying our prices may change from 1 April 2027 because labour costs may rise. Say we'll confirm once the government announces the new minimum wage rates. Do not invent any figures, dates, percentages or promises. Where you need details from me, such as my business name or when the new prices would apply, write "[OWNER TO FILL IN]". Keep it under 150 words and warm in tone.

Quotes that run past 1 April 2027

Below is a list of my open quotes with their dates and validity periods. List only the ones that could be accepted or delivered after 1 April 2027. Use only the information I've pasted. Do not assume dates I haven't given. If a quote has no date or validity period, list it separately under "NEEDS CHECKING".

[paste list here]

When the figure is announced

• [ ] Check the confirmed rates on the GOV.UK rates page, not a news summary
• [ ] Put the confirmed figure into your quote template and rota sheet, replacing the three columns
• [ ] Check all the age bands and the apprentice rate, since they may move by different amounts
• [ ] Ask your payroll provider to update payroll before April
• [ ] Send the customer note with the confirmed details filled in
• [ ] Use the National Minimum Wage calculator mentioned on GOV.UK to check anyone you're unsure about

If something doesn't add up, ask your accountant or payroll provider. Acas can answer employment questions.

At My AI Apprentice we run AI sessions for small businesses, including ones on turning spreadsheets like these into something you can act on. No pressure either way.