Low Pay Commission to suggest new rates for the National Living Wage and National Minimum Wage from 1st April 2026

On August 5, 2025, the government asked the Low Pay Commission (LPC) to suggest new rates for the National Living Wage (NLW) and National Minimum Wage (NMW) to start from April 1st, 2026. The remit on the National Living Wage says that the LPC “should take into account the cost of living, inflation forecasts between April 2026 and April 2027, the impact on the labour market, business competitiveness, and carefully consider wider macroeconomic conditions.”

The current estimate for the NLW increase is that it should rise to £12.71, being a 4.1% increase but this is only indicative at this stage. The aim is to ensure that it stays above two-thirds of the average earnings for workers aged 21 and over. 

The government also wants to remove age-based pay differences for the NMW for 18 to 20 year olds and has asked the LPC to make recommendations for the rate from April 2026. In the policy paper on this,  it states that “the LPC should also take account the effects on employment on younger workers, incentives for them to remain in training or education and the wider economy”. 

For other NMW rates, the government suggests that these rates should be set as high as possible without damaging job prospects for each group which presumably means that the LPC should certainly consider the economic consequences on businesses. 

The LPC has already had its annual consultation on the 2026 minimum wage changes which closed on 30 June 2025.  

The LPC needs to provide their recommendations to the government by October 2025. For businesses who pay NMW and NLW, they certainly need to anticipate an increase in wage rates when planning for 2026. 

The contents of this article is a general guide only at the date of publication. It is not comprehensive, and it does not constitute legal advice. Specific legal advice should be sought in relation to the particular facts of a given situation.