This week the government has published its new remit for the Low Pay Commission.
This will inform the recommendations the LPC makes for the National Living Wage uplift in April 2027.
The existing benchmark of low hourly pay as two-thirds of median income will remain significant in the LPC's recommendations, but has been slightly de-emphasised from previous years, with the government stating that this should be a 'key reference point' in combination with the below factors:
- the condition of the labour market
- the cost of living (including inflation forecasts between April 2027 and March 2028)
- the impact on businesses and competitiveness
- wider macroeconomic conditions.
On age bands, the government has said it remains committed to ending age banding, but also has instructed LPC to consider prospects of youth employment in its decisions.
You can find the full remit here. If you have any questions or reflections, please reach out to Luiza.
