Low Pay Commission Remit 2026: National Living Wage and National Minimum Wage
Published 16 March 2026
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The government is committed to economic growth and raising living standards. This means creating an economy that delivers for working people and businesses alike – productive, profitable, and growing. Offering opportunity and security for working people requires innovative businesses that are supported to invest and grow.
The government is proud of the impact of the minimum wage since its introduction in 1999. Millions of workers have been lifted out of low hourly pay and we have worked with businesses to ensure wages are sustainable. Fundamental to this has been the work of the Low Pay Commission (LPC) and its established track record of balancing multiple factors when making wage rate recommendations.
We therefore ask the LPC to make recommendations on the following rates, to come into effect on 1 April 2027.
National Living Wage
The government is committed to raising living standards of working people, which remains a central priority of the Plan for Change. The current benchmark of two-thirds of median hourly earnings is a recognised measure of low hourly pay, and the government believes it should continue to be the key reference point for future rates. In setting those rates, 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
National Minimum Wage for people aged 18 to 20 years old
The government remains committed to removing the discriminatory age bands for adults and aligning the National Minimum Wage for people aged 18 to 20 years old with the National Living Wage. However, 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.
Other National Minimum Wage rates
The government is committed to improving the employment prospects for young people, and is investing to deliver more apprenticeships and improved skills training and support for young people. It is therefore important to ensure that minimum wage rates for young people support this work.
We ask the LPC to recommend rates for people aged under 18 and apprentices which should be set at a level which supports the employment prospects for each group. In addition, we ask the LPC to collect evidence on the effectiveness and operation of the apprentice National Minimum Wage to help inform any possible future reforms. Finally, we ask the LPC to recommend a new accommodation offset rate.
Timing
The LPC is asked to provide advice in response to this remit to the Prime Minister and the Secretary of State for Business and Trade by the end of October 2026.