The Low Pay Commission (LPC) is inviting evidence to inform its recommendations on future minimum wage rates. UKFT is encouraging members to take part and ensure that the realities of your business, workforce and our industry are clearly represented.

The deadline for submissions is 26 June 2026.

HAVE YOUR SAY HERE

The LPC plays a central role in advising the government on the levels of the National Minimum Wage (NMW) and National Living Wage (NLW). Its recommendations will shape the rates applied from April 2027.

For many organisations, particularly small businesses and those operating with tight margins, changes to wage levels have a direct impact on costs, staffing, pricing, and growth. At the same time, wage increases are critical for supporting workers and maintaining a sustainable labour market.

This consultation is an opportunity to reflect that balance through real-world evidence.

Current and proposed wage levels

From 1 April 2026, the National Living Wage increased to £12.71 for workers aged 21 and over.

Looking ahead, the LPC estimates that maintaining the NLW at two-thirds of median earnings could require a rate between £13.02 and £13.34 in April 2027, with a central estimate of £13.18.

These figures are indicative and will be shaped by economic conditions, labour market trends, and wider cost pressures over the coming months.

Key issues under review

The consultation is not only about headline wage rates. The LPC is also seeking views on broader structural questions, including:

Younger workers and apprentices

The government has set out its intention to move towards aligning the 18–20-year-old rate with the National Living Wage. The LPC is exploring:

• The potential timing of this change
• The impact on employment opportunities for younger workers
• The effects of recent increases on apprentices and those aged 16–17

Economic conditions and affordability

The LPC is asking for evidence on:

• The affordability of further increases for employers
• The impact of the April 2026 rise on businesses and workers
• Wider economic pressures, including labour market conditions and cost of living

Why our industry’s input is important

As a membership organisation, we know that national data does not always capture the full picture.

Your insight can help highlight:

• The operational realities behind wage decisions
• Regional differences and sector-specific pressures
• The impact on recruitment, retention, and skills development
• How businesses are adapting to ongoing cost changes

The LPC is particularly interested in evidence that is practical, specific and grounded in experience. You do not need to respond to every question. Contributions focused on the areas most relevant to you are equally valuable.

How to take part

You can submit your response directly to the Low Pay Commission.

If you are interested in contributing further, the LPC is also holding meetings and discussions across the UK, both in person and online.

Responses may be quoted in the LPC’s annual report unless you request otherwise, and there is the option to keep your submission confidential.

HAVE YOUR SAY HERE