[UK] Low Pay Commission’s National Living Wage update

In the UK, the Low Pay Commission has updated its remit for the projected National Minimum Wage (NMW) and National Living Wage (NLW). These will apply from April 2026, Home Care Insight reports.

The Low Pay Commission remit restates the government’s focus on two-thirds of median earnings and details the updated estimates required from April 2026 to reach this benchmark.

Its central estimate is reportedly that an NLW increase to £12.71 (a 4.1 per cent rise) would ensure the NLW does not fall below two-thirds of median earnings.

The Low Pay Commission shared a projected range around this estimate, from £12.55 to £12.86. An increase from previous estimates in May of £12.65 (a 3.6 per cent rise).

Its final recommendations will be submitted to the government in October.

By April 2026, the new National Living Wage and National Minimum Wage will take effect.

Care England has urged the social care sector to begin to plan in line with possible changes.

It reportedly recommends reviewing staffing budgets, updating workforce plans, engaging with commissioners early, and tracking Low Pay Commission updates.

Care England caut that the increases will have implications for care providers. It emphasised three main impacts:

• Even the lower end of the NLW forecast will mean significant upward pressure on wage bills.

• The gap between median care wages and the NLW may need to be maintained to remain competitive in recruitment and retention.

• Cost pressures may be well over £1bn across the sector by 2026.

The remit reads, “The Government is committed to raising the living standards of working people, and this is the key focus of the Government’s Growth Mission.

“That is why the Government asks the Low Pay Commission to ensure that the National Living Wage rate does not drop below two-thirds of UK median earnings for workers in the National Living Wage population, a recognised measure of low hourly pay.

“The Low Pay Commission should take into account the cost of living, inflation forecasts between April 2026 and April 2027, the impact on the labour market, business and competitiveness, and carefully consider wider macroeconomic conditions.”

Source: Home Care Insight

(Links and quote via original reporting)

In the UK, the Low Pay Commission has updated its remit for the projected National Minimum Wage (NMW) and National Living Wage (NLW). These will apply from April 2026, Home Care Insight reports.

The Low Pay Commission remit restates the government’s focus on two-thirds of median earnings and details the updated estimates required from April 2026 to reach this benchmark.

Its central estimate is reportedly that an NLW increase to £12.71 (a 4.1 per cent rise) would ensure the NLW does not fall below two-thirds of median earnings.

The Low Pay Commission shared a projected range around this estimate, from £12.55 to £12.86. An increase from previous estimates in May of £12.65 (a 3.6 per cent rise).

Its final recommendations will be submitted to the government in October.

By April 2026, the new National Living Wage and National Minimum Wage will take effect.

Care England has urged the social care sector to begin to plan in line with possible changes.

It reportedly recommends reviewing staffing budgets, updating workforce plans, engaging with commissioners early, and tracking Low Pay Commission updates.

Care England caut that the increases will have implications for care providers. It emphasised three main impacts:

• Even the lower end of the NLW forecast will mean significant upward pressure on wage bills.

• The gap between median care wages and the NLW may need to be maintained to remain competitive in recruitment and retention.

• Cost pressures may be well over £1bn across the sector by 2026.

The remit reads, “The Government is committed to raising the living standards of working people, and this is the key focus of the Government’s Growth Mission.

“That is why the Government asks the Low Pay Commission to ensure that the National Living Wage rate does not drop below two-thirds of UK median earnings for workers in the National Living Wage population, a recognised measure of low hourly pay.

“The Low Pay Commission should take into account the cost of living, inflation forecasts between April 2026 and April 2027, the impact on the labour market, business and competitiveness, and carefully consider wider macroeconomic conditions.”

Source: Home Care Insight

(Links and quote via original reporting)