Policy paper

Letter from Peter Kyle to Low Pay Commission Remit 2026

Published 16 March 2026

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This publication is available at https://www.gov.uk/government/publications/national-minimum-wage-and-national-living-wage-low-pay-commission-remit-2026/letter-from-peter-kyle-to-low-pay-commission-remit-2026

Letter to Baroness Stroud, Chair, Low Pay Commission from Rt Hon Peter Kyle MP, Secretary of State for Business and Trade and President of the Board of Trade.

16 March 2026

Dear Baroness Stroud,

First, I would like to extend my continued appreciation to you, your commissioner colleagues and the Low Pay Commission (LPC) Secretariat for your work on the previous remits. Everyone in the government places great value on the tri-partite model of the commission, and your commitment to recommendations based on both evidence and consensus.

The government is committed to economic growth and raising living standards. We recognise that our ambition should be backed by evidence, and that the minimum wage rate should be consistent with delivering inclusive growth for working people and businesses alike.

The 2026 remit states that the current benchmark of two-thirds of median hourly earnings for the National Living Wage should continue to be the key reference point for future rates, The LPC should consider the following factors:

  • the condition of the labour market
  • the cost of living (including inflation forecasts between April 2027 and March 2028)
  • the impact on businesses and competitiveness
  • wider macroeconomic conditions

The remit reiterates our commitment to removing the discriminatory age bands. However in recognition of the commission’s concerns regarding the youth labour market, the remit specifies that when recommending rates for the National Minimum Wage, the LPC has full flexibility to determine the pace and ultimate timing of that alignment, with priority being given to the employment prospects of younger workers. 

Finally, the remit requests recommendations on the rates for people aged under 18, apprentice rates and the accommodation offset. Further details are contained in the attached remit.

I, and the rest of the ministerial team, look forward to continuing to work closely with the LPC, and we look forward to receiving the LPC’s recommendations in October. 

Yours sincerely,

Rt Hon Peter Kyle MP

Secretary of State for the Department for Business and Trade and President of the Board of Trade

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