Chancellor John Healey announced the Autumn budget promising ‘‘breathing space’’ for businesses.
Key updates included increases to national living wage and NMW, new rules on wage transparency, a cash injection to apprenticeships, non-complete clause reforms and immigration reforms.
In recent days, many employers have contacted us seeking guidance on what these announcements really mean for their business. Below, we outline the key updates from the Chancellor’s Budget and what they could mean for organisations across the UK.
National Living Wage Increase
As part of the Autumn budget, it was announced that the national minimum wage for employees aged 21 and over will increase increase by 3.9 per cent. This means from April 2027, workers will receive an increase from £12.71 to £13.20 from April 2027.
The rates for 18 to 20 year olds will increase by 42p an hour to £11.27.
This is great news for employees. However, we understand that a lot of businesses are feeling the strain and may struggle to meet this by April.
If you’re able to increase staff wages before April 2027, this could send a positive message to your employees. However, we know this isn’t possible for lots of businesses and many are looking to establish what other changes need to happen to offset this increase.
The real living wage recently announced their suggested increase in hourly pay. You can read more about this in our recent article.
Immigration Reforms
The Chancellor also announced a series of immigration reforms designed to attract highly skilled professionals to the UK and help businesses overcome recruitment challenges.
From spring 2027, the government plans to expand the High Potential Individual visa route to include graduates from the world’s top 150 universities, alongside changes to visa salary requirements to make it easier for employers to recruit the talent they need.
The reforms will also provide eligible graduates with greater opportunities to work in the UK, while giving highly skilled workers more time to secure alternative employment.
As part of these changes, the government intends to introduce a visa curtailment period of up to six months for the highest-skilled workers, providing additional flexibility when changing jobs.
Non-complete clauses face reforms
The Chancellor mentioned plans to make it easier for workers to move between jobs which means employers may face a non-complete clauses. Healey has said this will be put in place to get the best talent in to our fast-growth firms and move easily on to the next opportunity.
The Government are expected to consult on this in early 2027 and we will keep you updated on this.
Apprenticeship Boost
The government previously announced a £100 million investment in a new local apprenticeship service, designed to connect young people with businesses in their communities and create more employment opportunities.
Responding to the announcement, Healey emphasised his determination not to leave a million young people behind, highlighting the government’s broader commitment to reducing youth unemployment and reforming the welfare system.
The HR Booth are Here to Help
As with any Budget announcement, the real impact will unfold over the coming months as employers begin to assess how these changes influence their staffing plans, payroll costs, and wider business strategy. What remains clear is that staying informed and prepared will be essential for organisations of all sizes.
The HR Booth is on hand to support you through these changes. Whether you need guidance on interpreting the new measures, help to adjust your HR policies, or advice on managing the financial and operational impact on your workforce, our team can provide practical, tailored support. If you have questions about how the Autumn Budget may affect your organisation, we’re here to help you navigate the detail and plan with confidence.
Contact Us
Overall, it looks like the decisions the Chancellor has made in the Autumn budget will help employees in some areas. However, there seems to be a lack of support for businesses and SMEs may struggle to meet the demands of the changes. You can read about the full list of updates by the Chancellor on the Government website. If you would like more advice or support with your HR function, contact us.
