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Low Pay Commission consultation letter

Published 2 May 2025

CONSULTATION ON APRIL 2026 NATIONAL MINIMUM WAGE RATES

DEADLINE FOR SUBMISSIONS: 30 JUNE 2025

The Low Pay Commission (LPC) is the independent body that advises the Government on the level of the minimum wage. Later this year, we will recommend the National Minimum Wage (NMW) and National Living Wage (NLW) rates to apply from April 2026. I am writing to invite you to submit evidence to our consultation by Monday 30 June 2025. We do not expect respondents to answer all questions unless they are able to; they should focus on the areas which are of most concern to them and where they can provide the most comprehensive evidence.

We have not yet received our remit from the Government. Ordinarily, we would know the terms of our remit, and the parameters for the recommendations we will make later in the year, before launching this consultation. Rather than delay our consultation any further though, we are publishing this document now to allow all stakeholders a substantial length of time to contribute. In asking about the effects of the most recent upratings, the absence of a future remit should not affect questions or responses.

Once our remit is confirmed and published, we may publish an updated version of this document.

National Living Wage

On 1 April 2025, the NLW increased to £12.21 for all workers aged 21 and over. This increase fulfilled two requirements of the remit set for us last year: it moved the rate to two-thirds of median earnings, and it ensured low-paid workers would receive a real-terms increase in their hourly pay, throughout the period to March 2026.

To maintain the NLW at two-thirds of median earnings, a rate between £12.50 and £12.80 would be required in April 2026 with a central estimate of £12.65. So far this year, wage growth has turned out to be stronger than predicted; if this continues then these figures will likely increase. However, forecasting wage growth remains difficult due to unpredictable economic conditions. Once our remit is published, we will update these estimates.

As noted above, our remit has not yet been published, so we do not know what the Government will ask us to do in respect of the NLW in 2026. The projected figures above are therefore indicative only and assume that two-thirds of median earnings remains a relevant point of reference. They are subject to what the Government says in the remit, and the LPC’s own deliberations later in 2025. They are also subject to changes in data sources and forecasts between now and the time we make our recommendations.

National Minimum Wage for younger workers and apprentices

The Government stated its ambition last year to extend the NLW to all workers aged 18 and over. In our advice to the Government last October, we substantially narrowed the gap between the 18-20 Year Old Rate and the NLW, and we stated our intention to consult “on the appropriate pace and approach to closing the gap the rest of the way, whether by raising the level, lowering the age threshold or a combination of the two.” This consultation asks for views on how we could approach this and what the impact of a reduction in the age threshold might be. An annex to this letter sets out some detail on different potential approaches.

For the 16-17 Year Old Rate and Apprentice Rate, we are seeking views on the effects of recent increases and the scope for future increases.

What we would like evidence on

We are seeking evidence on the broad economic and labour market conditions that workers and businesses are facing, as well as the specific impacts of the rates themselves.

We are particularly interested in evidence on the following:

• The affordability and effects of an increase in April 2026 to an NLW rate within the range of £12.50 to £12.80 (noting that these figures are indicative only because we don’t have our remit for 2026’s rates yet from the Government).
• The impact so far of increases in the NLW in April 2025 on workers, employers, the labour market and economy.
• The effect of recent minimum wage increases for younger workers on their employment prospects.
• Views on the approaches to lowering the NLW age threshold set out in the annex to this document.

Who we would like evidence from

We would like evidence from the widest possible range of contributors, from all parts of the UK: employers, workers, representatives, experts and the public. We are interested in all sectors affected by the minimum wage: those accounting for a lot of minimum wage workers (e.g. retail and hospitality); those where a high proportion of workers are on the minimum wage (e.g. social care); and those not traditionally considered low-paying but where rising rates nonetheless have an effect (e.g. education and public services).

How to submit evidence

We would prefer respondents to submit their responses via our online consultation platform. You can also submit written evidence by e-mail to lpc@lowpay.gov.uk.

As part of our consultation, we meet people and organisations across the UK to hear first-hand evidence on these questions. We are in the process of running in-person regional visits and will continue to hold meetings and discussions online alongside these. If you are interested in meeting with us to provide first-hand evidence, please contact us via lpc@lowpay.gov.uk.

Our practice is to quote consultation responses in our annual report and to list the names of respondents unless they request otherwise. We will seek clearance from respondents before quoting or referencing their evidence in published documents. This year, we intend to publish consultation responses alongside our annual report. If you do not wish your response to be made public, then please make that clear in your submission.

Yours sincerely,

Baroness Philippa Stroud, Chair of the Low Pay Commission

Privacy notice

We will only process your personal data for purposes which are compatible with those specified in this privacy notice. This may include archiving in the public interest, or scientific, historical or statistical research, in accordance with Article 89 UK GDPR. Where your data is further used for research purposes, appropriate safeguards (including anonymisation, pseudonymisation and data minimisation techniques) will be used to ensure that your personal data is only processed where it is necessary for us to do so, and that it is processed lawfully and securely.

Compatible research purposes may include analysis to further policy development, or to analyse public consultation responses or similar requests for information from the public. While we use AI models to support the efficiency and effectiveness of this analytical work, all written responses will be read by LPC staff. Unless made expressly clear to you, we will not use AI to either make or inform decisions about you.