National Living Wage 2026/27 update

In November 2025, the government announced an increase to the NLW effective from 1 April 2025 to £12.71 per hour.  

The government advised NHS Employers that from 1 April 2026, staff in AfC pay bands 1 (closed spot salary) and both pay points of band 2 will receive a temporary uplift ahead of the 2026/27 pay award. This is set out in the table below.  

No changes to any other pay points will be made at this time. The Electronic Staff Record (ESR) will be amending the payroll system to ensure the uplifts occur automatically from 1 April 2026, preventing the need for any manual intervention.  

Employing organisations will need to ensure the following: 

1) Employers will need to ensure they have identified any staff affected by the NLW increase and ensure their pay remains compliant. This may include: 

• ensuring national minimum wage rates are maintained for any staff impacted by salary sacrifice arrangements 

• ensuring rates for bank workers under local arrangements are uplifted in line with the NLW, as a minimum 

• ensuring staff undertaking an apprenticeship receive appropriate uplifts in line with the statutory provisions. This will include consideration of Annex 21 (paragraph 4) provisions of where staff are employed under these arrangements.  

2. Review the ESR user notice and identify any local or manual interventions which may be required to ensure pay for all affected staff is amended.  

3. Communicate the position with all affected staff, including where any interaction with salary sacrifice may occur.  

To ensure compliance with the uplifted NLW rates, the NHS Terms and Conditions of Service (TCS) Handbook will be updated on 1 April 2026.