The UK government makes public the report from the Low Pay Commission 

The government has put out the job description for the Low Pay Commission (LPC). This will help them decide what the National Minimum Wage (NMW) and National Living Wage (NLW) rates should be from April 2026 on.

As part of its Growth Mission, the government wants to raise the standard of living for people who work. To do this, it told the LPC to keep the NLW above two-thirds of the typical wage for workers who are eligible for it. These wages are thought to be a good place to start by many people who want to fix low hourly pay.

Which factors are considered for calculation of Low pay Commission ?

Lots of people asked the LPC to give their ideas a lot of thought. Some of these are the cost of living, the job market, business success, inflation predictions for April 2026 and April 2027, and bigger macroeconomic trends. The government says once more that it wants the NLW to be two-thirds of the median wage. But it's clear from the job description that the end suggestions must be based on a fair analysis and not just a formula.

A new report from the LPC today shows that the NLW may need to rise to £12.71 by April 2026, which is a 4.1% increase, in order to hit the two-thirds level. But the LPC thinks it will be between £12.55 and £12.86 because it's hard to say for sure. It's more than what the LPC said in May 2025, when they said the most likely number would be £12.65, with a range of £12.50-£12.80. The change for the better happened because wage growth was faster than expected in 2025 and better plans were made for 2026.

The LPC says that these predictions might need to be changed again before final suggestions are made if wage growth keeps going through the roof. In May 2025, wages are expected to rise 5.1% year-over-year. They will rise another 3.9% in the fourth quarter of 2025 and another 3% in the fourth quarter of 2026.

The LPC will give the Government its official ideas by the end of October 2025, at the latest.

These are the minimum wage rates as of April 1, 2025:

• NLW (over 21): £12.21 (-0.77 / 6.7%)
• Rate for people aged 18 to 20: £10 (√£1.40 / 16.3%)
• For 16–17-year-olds and trainees, the rate is £7.55 (-1.15%), which is 18.0%.
• £10.66 (√£0.67 / 6.7%) to cover living costs