Overview

• The government extended the Low Pay Commission’s remit in August to include removing age-based wage bands and factoring in cost of living, business affordability and economic conditions
• The LPC projects the national living wage for workers aged 21 and over will need a 4.1% increase to £12.71 an hour in April 2026, with a possible range of £12.55 to £12.86
• Over the summer the commission will gather evidence from employers, trade unions and low-paid workers on narrowing the gap between the 18-20 rate and the adult rate and charting a path to a single adult wage
• Formal recommendations are due in October, providing the basis for the government’s statutory decision on next April’s minimum and living wage levels
• Business groups including UKHospitality and the British Chambers of Commerce warn that steep rises for younger workers could lead to reduced job opportunities