Low Pay Commission 2026 consultation questions
Published 1 April 2026
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About you
Please provide information about yourself or your organisation. If possible, include details about your location, the type of job or business (occupation and/or sector) you are involved in, your workforce if you are an employer (including number of minimum wage workers), and anything else you think is relevant.
The National Living Wage
What has been the impact of the NLW in the past year, particularly the most recent 4.1 per cent increase to £12.71 in April this year? We are interested in the effect of the NLW on any of the areas listed below:
- Employment
- Hours
- Earnings
- Profits
- Prices
- Productivity
- Pay structures and differentials
- Other employee benefits
- Progression and job moves
- Training
- Investment
- Recruitment
- Job quality and security
- Demand in the economy
At what level should the NLW be set from April 2027? Please explain your response.
Experience of those on low pay over the past year
Recent increases in the NLW have exceeded increases in average prices. Has this made it easier for workers at or close to NLW/NMW to meet their living costs?
What has happened to the quality of work recently? For example, have workers experienced changes in contract types, flexibility, treatment within the workplace and work intensification (e.g. greater expectations for workers to work more flexibly, with greater effort, to higher standard etc)? What are the drivers of these changes?
What are the barriers preventing workers from moving to a new job, particularly one that is better paid?
How have access and cost of childcare and transport affected workers’ ability to move into work or to a better paying job?
What has been workers’ experience of the Universal Credit system and how the minimum wage interacts with it? Have these influenced workers’ approach to how many hours they work and whether they move to another better paying job?
Young people
What is the outlook for the recruitment and employment of workers aged under 21? What is driving employers’ decisions on this?
How have recent changes in the minimum wages for young people affected their employment prospects? You may wish to consider both employers’ decisions about hiring and pay, and young people’s decisions about employment.
What approach should we take to recommending 18-20 Year Old and 16-17 Year Old Rates for April 2027? For example, should we consider extending the NLW to 20 year olds?
The Government remains committed to aligning the 18 to 20 Year Old Rate with the NLW. The LPC has full flexibility to recommend the pace and timing of that alignment. When do you think this should happen?
Apprentices
What are your views on the effectiveness and operation of the Apprentice Rate?
What is the outlook for the recruitment and employment of apprentices? What are the drivers of employers’ decisions on this?
What do you expect the effects of the latest increase in the Apprentice Rate to be?
What approach should we take to recommending the Apprentice Rate for April 2027?
Compliance and enforcement
What issues are there with compliance with the minimum wage and what could be done to address these?
What comments do you have on the enforcement work done by HMRC, and on the operation of the new Fair Work Agency?
Accommodation Offset
What has been the effect of recent increases in the offset on employers’ decisions on the provision of accommodation?
What impact does the offset have on workers? What are the hours, pay and working conditions of workers for whom the offset is deducted?
Economic outlook
What are your views on the economic outlook and business conditions in the UK for the period up to April 2026? We are particularly interested in:
- the conditions in the specific sector(s) in which you operate.
- the effects of Government policies and interventions.
- the current state of the labour market, recruitment and retention.
- the impact of global economic conditions.
What has been your experience of wage growth and inflation in the last year, and what are your views on forecasts for the next couple of years? Apart from the minimum wage, what are the key drivers of pay decisions in low-paying sectors and occupations?