Autumn Budget 2026

Chancellor John Healey has delivered the Autumn Budget for 2026. Read our summary of the key areas that impact the NHS and its workforce.

National Living Wage 

• National living wage and national living wage increasing by 3.9 per cent.
• From April 2027 the National Living Wage will rise to £13.21 an hour and the 18-20 National Minimum Wage to £11.27 an hour. 

Implications for the NHS 

• The current rate of pay for entry level Band 2 is £12.92 per hour and the entry point to Band 3 is £13.17.  
• If the 2027/28 pay award is not confirmed in time for April implementation, NHS Employers will discuss interim arrangements with government to ensure continued compliance with minimum wage legislation.

Fuel duty 

• Fuel duty remains frozen, with the five pence cut extended to July 2027.

Mileage

• A permanent increase to tax-free mileage rates for employees and self-employed people who use their own car or van for work. The tax-free, per mile rate will be 55p for the first 10,000 miles and 35p per mile for mileage above 10,000 miles.
• Mileage rates in the NHS Terms and Conditions of Service Handbook are reviewed every April and October, using Office for National Statistics (ONS) data. This data allows for the review of the latest costs of motoring such as fuel, maintenance and repairs. The latest review is underway, with the outcome due in November.

Immigration Skills Charge and Certificate of Sponsorship fees

• A change to the tax treatment of the Immigration Skills Charge and Certificate of Sponsorship fees. The government will introduce legislation in Finance Bill 2026-27 so that an employer’s payment of an Immigration Skills Charge or Certificate of Sponsorship fee is not treated as a taxable benefit in kind. The change will apply to payments made on or after 28 October 2026.

NHS spending 

• A further £190 million in 2026‑27 for the NHS in England. This funding will support the NHS to manage the additional pressures it is facing over the winter and the rest of this year. 
• An investment of £100 million to accelerate the adoption of robotically assisted surgery across England. This investment aims to support an increase in robotic-assisted procedures from 70,000 a year today to 500,000 in 2035.

AI investment

• The Chancellor announced an independent review into NHS productivity and the opportunities presented by AI and technology to transform services for patients, ahead of the next spending review. Reporting in early 2027, this will focus on the practical opportunities presented by AI and technology to transform services for patients and boost NHS productivity.