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The £13.21 National Living Wage and care staff costs

The National Living Wage rises from £12.71 to £13.21 an hour on 1 April 2027. For each full-time care worker on the rate, pay and employer National Insurance rise by £1,121.25 a year.

The 2027 rates

The government accepted the Low Pay Commission's recommendations on 28 October 2026. From 1 April 2027 the rate for workers aged 21 and over is £13.21, up 3.9% from £12.71. The rate for 18 to 20-year-olds is £11.27, the rate for 16 and 17-year-olds and apprentices is £8.31, and the accommodation offset is £11.53 a day.

One full-time care worker over a year

  • Pay, 2027/28£25,759.50
  • Employer National Insurance, 2027/28£3,113.93
  • Extra pay£975.00
  • Extra employer National Insurance£146.25
  • Extra cost a worker£1,121.25
37.5 hours a week for 52 weeks, aged 21 or over, at £12.71 and £13.21 an hour, before pension. Sources: GOV.UK National Minimum Wage rates; LPC recommendations accepted 28 October 2026; HMRC rates and thresholds 2026 to 2027.

Across a home or a branch

Multiply £1,121.25 by the number of full-time-equivalent staff paid at the rate. Twenty full-time-equivalent care workers add £22,425 a year before pension contributions.

Bury Council's 2026/27 fee report noted the expectation among staff paid close to the minimum wage that their differential over it will be kept, which adds to the cost for staff paid above the rate.

Fees from April 2027

Bury's 2026/27 council rates took effect on 1 April 2026, the date of that year's wage rise. Fee increases for self-funded residents follow the notice terms in each resident's contract.

How we help

We model the April 2027 wage bill from your payroll, with on-costs, and turn it into the fee or hourly rate each service needs. Try the care staffing cost calculator.

Common questions

What is the National Living Wage from April 2027?

£13.21 an hour for workers aged 21 and over, from 1 April 2027.

What is the apprentice rate from April 2027?

£8.31 an hour, the same as the rate for 16 and 17-year-olds.

Related reading

Negotiating your council's care fee uplift

What councils are told about fee levels, and the cost case that answers it.

Employment Allowance and employer National Insurance

Employer National Insurance at 15%, the £10,500 allowance and who can claim it.

Sleep-in shifts and the minimum wage

The sleep-in hours that count for the National Living Wage after the Mencap ruling.

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