Checked 13 October 2026
What changes for UK pay and work in April 2027
Some April 2027 changes are already law: higher tax on savings income, a smaller cash ISA allowance and frozen tax thresholds. The minimum wage and statutory pay rates for 2027/28 have not been announced. They are expected with the Budget on 28 October 2026, and this page will be updated that day.
The short version
As of 13 October 2026, four things are fixed in law for April 2027 or just before it: savings income tax rates rise by two points, as do property income rates outside Scotland, the cash ISA limit falls to £12,000 for people aged 64 or under, the personal allowance and higher-rate threshold stay frozen, and unfair dismissal protection starts after six months from 1 January 2027. The new minimum wage, sick pay and maternity pay rates are not known yet. This page separates what is law, what is planned, and what is still to be announced, because a lot of coverage mixes them up.
Minimum wage from April 2027: not announced yet
The government has asked the Low Pay Commission to recommend rates to take effect on 1 April 2027, with its advice due by the end of October 2026. Nothing has been published yet. The Chancellor has confirmed the Budget will be on 28 October 2026, and last year the new rates were announced on Budget day.
The Commission's April 2026 consultation letter gave a central estimate of £13.18 an hour for workers aged 21 and over, within a range of £13.02 to £13.34. That figure is only a projection, and the letter gave no figures for younger workers or apprentices. Until 1 April 2027 the rates remain £12.71 at 21 and over, £10.85 at 18 to 20, and £8.00 for under 18s and apprentices.
Sick pay, maternity pay and other statutory pay: not announced yet
No 2027/28 figures have been published for Statutory Sick Pay, Statutory Maternity Pay, or paternity, adoption, shared parental, bereavement or neonatal pay. These are normally uprated each April. For now, SSP is the lower of £123.25 a week or 80% of average weekly earnings. Maternity and adoption pay are 90% of average weekly earnings for the first six weeks, then £194.32 or 90%, whichever is lower, and paternity, shared parental, bereavement and neonatal pay are £194.32 or 90%, whichever is lower. The sick pay and maternity pay calculators use the 2026/27 rates and will move to the new ones when they are confirmed.
Income tax thresholds stay frozen
The personal allowance stays at £12,570 and the basic rate limit at £37,700, so the higher-rate threshold stays at £50,270 in England, Wales and Northern Ireland. Scotland sets its own income tax bands each year. The Finance Act 2026 extended the freeze to the 2030-31 tax year, ending on 5 April 2031. A frozen threshold means any pay rise takes more of your income into tax, even though no rate has gone up.
Tax on savings income rises from 6 April 2027
From the 2027-28 tax year, income tax on savings income rises to 22% at the basic rate, 42% at the higher rate and 47% at the additional rate, two points higher than the main rates. Property income also moves to 22%, 42% and 47% under section 7, for taxpayers in England, Wales and Northern Ireland. In Wales the rate is the UK property rate minus 10 points plus the Welsh rate set by the Senedd. Welsh income tax rates for 2026 to 2027 match England's, so on current rates that gives the same figures. Scottish taxpayers' property income stays on the Scottish rates. The Act also lets the Scottish Parliament and the Senedd set their own property income rates, from a tax year the Treasury has not yet appointed.
£1,000 of taxable savings interest, for a basic-rate taxpayer, after any allowances: tax is £220 from April 2027, up from £200.
Dividend tax rose earlier, to 10.75% and 35.75%, in April 2026; see what changed in April 2026.
The cash ISA limit falls to £12,000
From 6 April 2027, people aged 64 or under at the end of the tax year can put no more than £12,000 a year into cash ISAs. The overall ISA allowance stays £20,000, so the rest can still go into other types of ISA. The change is made by the Individual Savings Account (Amendment) (No. 2) Regulations 2026.
Employment rights changes due in 2027
In law, from 1 January 2027: unfair dismissal protection starts after six months of employment instead of two years, and the cap on compensatory awards is removed. It applies to dismissals with an effective date of termination on or after 1 January 2027.
Planned, with a date the government has stated, not yet in force:
- January 2027: new protections against fire and rehire, and a duty on employers to tell workers they can join a union
- April 2027: a day-one right to up to two weeks of unpaid bereavement leave, including for pregnancy loss before 24 weeks, to be taken within 56 weeks
- Autumn 2027: a new process and reasonableness test for flexible working requests
Planned for 2027, no month given: guaranteed hours and shift notice for zero-hours workers, stronger dismissal protection for pregnant workers and new mothers, gender pay gap and menopause action plans, and regulation of umbrella companies. The government says all future dates may change.
Announced, but not law yet
- Plan 2 student loans: the repayment threshold is to be frozen at £29,385 for three years from April 2027, as announced in the November 2025 Budget.
- National Insurance thresholds: the November 2025 Budget said the employee and employer thresholds stay at their current levels until April 2031, matching the income tax freeze.
One change that is often reported as sooner: the cap on National Insurance relief for pension salary sacrifice, at £2,000, is law but starts in the 2029-30 tax year.
What happens next
The Budget on 28 October 2026 should settle the minimum wage and the 2027/28 statutory pay rates. This page will be updated the same day, and the UK statutory rates page moves to 2027/28 figures in April.
Common questions
What will the minimum wage be in April 2027?
It has not been announced. The Low Pay Commission's advice is due by the end of October 2026, and the Budget is on 28 October 2026. Its April consultation gave a central projection of £13.18 an hour for over-21s, in a range of £13.02 to £13.34, but that figure is only an estimate.
Is the personal allowance going up in April 2027?
No. It stays at £12,570, and outside Scotland the higher-rate threshold stays at £50,270. The Finance Act 2026 froze both until 5 April 2031, so any pay rise in the meantime takes more of your income into tax. Scotland sets its own bands.
Is tax on savings interest going up?
Yes, from 6 April 2027. Savings income will be taxed at 22%, 42% and 47% instead of 20%, 40% and 45%, under the Finance Act 2026. Property income moves to the same rates for taxpayers in England, Wales and Northern Ireland; Scottish taxpayers' property income stays on Scottish rates.
How much can I put in a cash ISA from April 2027?
£12,000 a year if you are 64 or under at the end of the tax year. The overall ISA allowance stays £20,000, so the remaining £8,000 can go into other ISA types. The rule is in the ISA (Amendment) (No. 2) Regulations 2026.
When does the six-month unfair dismissal rule start?
For dismissals with an effective date of termination on or after 1 January 2027. From then, unfair dismissal protection applies after six months of employment instead of two years, and the cap on compensatory awards is removed.