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UK Expands Low Pay Commission’s Mandate to Pursue Unified Adult Minimum Wage

The Low Pay Commission will now weigh living costs alongside plans to eliminate age-based wage bands ahead of its October review of 2026 rates.

People walk on Oxford Street in London, Britain, May 15, 2025. REUTERS/Maja Smiejkowska/File Photo
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Overview

  • Government has formally broadened the commission’s remit to factor in cost-of-living pressures and consult on eliminating wage tiers for 18-20-year-olds in pursuit of a single adult rate.
  • The commission projects the national living wage could rise about 4.1 percent to £12.71 an hour in April 2026, with a potential range between £12.55 and £12.86 depending on economic conditions.
  • Ministers have tasked the advisory body to engage employers, trade unions and workers in gathering evidence before it makes final recommendations in October.
  • Labour casts the remit expansion as central to its Plan for Change for restoring real incomes and preserving Britain’s wage competitiveness.
  • Hospitality and other business groups warn that further minimum wage rises risk pricing young workers out of entry-level roles by adding to already heightened labour costs.