The Government has set out the new remit for the Low Pay Commission (LPC) when recommending the National Living Wage (NLW) and National Minimum Wage (NMW) rates that will apply from April 2026. This comes as the Government takes the next steps to deliver its manifesto pledges to remove the “discriminatory” age bands and create a single adult rate.
The LPC will consult with employers on narrowing the gap between the 18–20-year-old rate of the NMW and the NLW (currently payable to those aged 21 and over) and will put forward recommendations on moving to a single adult rate in the future.
The Government says it has put the cost of living at the heart of the LPC’s new remit. The cost of living was first included in the LPC’s remit last year, benefitting around three million workers.
The LPC will recommend the new rates for April 2026 to the Government in October, which are usually accepted by the Government.
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Following the release of the new remit, the LPC has revealed its latest projections for the NLW.
The Government has asked the LPC to “ensure that the National Living Wage rate does not drop below two-thirds of UK median earnings for workers in the National Living Wage population, a recognised measure of low hourly pay.”
The LPC’s updated central estimate of the NLW that will be required from April 2026 to ensure the NLW does not fall below two-thirds of median earnings is £12.71 per hour (a 4.1% increase from the current rate of £12.21 per hour).
However, due to difficulties in predicting this figure, the LPC has projected a range around its central estimate from £12.55 to £12.86 per hour.
The LPC’s recommendations are not based on formula alone. It is also required to consider economic conditions and factors including the cost of living, inflation forecasts between April 2026 and April 2027 and the impact on the labour market, business and competitiveness. For that reason, the figures are indicative only and may be changed.
These latest estimates have already increased since the LPC’s previous projections in May 2025. The NLW rate for April 2026 that is recommended by the LPC in October 2025 may be higher again than these current projections if wage growth continues to be stronger than forecast.
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