CPS analysis: employing a minimum-wage worker to cost £4,462 more a year from April 2027 than in 2024

Analysis by the Centre for Policy Studies (CPS) finds that from April 2027, employing a 21-year-old on the minimum wage will cost £4,462 more a year than in 2024. A full-time 35-hour National Living Wage job will cost £26,898 a year, up from £22,438 two years earlier. At the Budget, Treasury official John Healey confirmed the National Living Wage will rise from £12.71 to £13.21 an hour, with a smaller youth-rate rise. ONS data show 16–24 unemployment at 15.6% in the three months to August 2026, versus 13.8% in 2024.