Consultation

LPC consultation letter 2026

Published 1 April 2026

Dear Sir or Madam,

LOW PAY COMMISSION CONSULTATION

DEADLINE FOR SUBMISSIONS: 26 JUNE 2026

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 2027. I am writing to invite you to submit evidence to our consultation by Friday 26 June 2026. 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. Shortened versions of this consultation, designed specifically for individual employers and workers, are available on our online consultation platform.

Our remit from the Government was published on 16 March 2026 and is available to view here.

National Living Wage

On 1 April 2026, the NLW increased to £12.71 for all workers aged 21 and over. We expect this increase will ensure low-paid workers will receive a real-terms increase in their hourly pay, throughout the period to March 2027.

Our remit asks us to use the benchmark of two-thirds of median earnings as “the key reference point” for future rates. We estimate that to maintain the NLW at two-thirds of median earnings, a rate between £13.02 and £13.34 (or an increase of between 2.4 and 5.0 per cent) would be required in April 2027, with a central estimate of £13.18 (3.7 per cent).

These projected figures above are indicative only. The final recommended rate will be subject to the LPC’s deliberations later in the year, which must also take account of the state of economy, labour market and living costs. The projected figures are also subject to changes in data sources and forecasts between now and the time we make our recommendations. This uncertainty is even more apparent than usual given the current conflict in the Middle East.

National Minimum Wage for younger workers and apprentices

In our remit, the Government restates its commitment to “removing the discriminatory age bands for adults and aligning the 18- to 20-year-old National Minimum Wage with the National Living Wage.” But it makes clear that the LPC has full flexibility to recommend the ultimate timing of that change and that we should give priority to the employment prospects of young workers. We are seeking views on the state of the youth labour market, the effects of our most recent recommendations for young workers and the impacts of extending the NLW to 18-20 year olds

Our remit asks us to recommend the 16-17 Year Old Rate and Apprentice Rate at a rate which supports the employment prospects of each group. For each of these groups, 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 2027 to an NLW rate within the range of £13.02 to £13.34 (or an increase of between 2.4 and 4.9 per cent), with a central estimate of £13.18 (3.7 per cent). These projected figures are indicative only. The final recommended rate will be subject to the LPC’s deliberations later in the year, which must also take account of the state of economy, labour market and living costs. The projected figures are also subject to changes in data sources and forecasts between now and the time we make our recommendations.

• The impact so far of increases in the NLW in April 2026 on workers, employers, the labour market and economy.

• The effect of recent minimum wage increases for younger workers on their employment prospects.

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). The impacts of the minimum wage in different parts of the UK, and on different groups of workers, particularly those with protected characteristics, continue to be central to our work.

How to submit evidence

You can submit written evidence by e-mail to lpc@lowpay.gov.uk.

Our online consultation platform hosts shortened versions of this consultation, intended to be accessible for individual workers and employers. If you are responding in a different capacity (for example, as an organisation representing employers or workers), or you wish to respond to the full range of questions, we invite you to send your response directly to us at lpc@lowpay.gov.uk. If you are unsure which response route to use, please get in touch.

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. 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