Members only
The government has published its remit to the Low Pay Commission (LPC). This outlines areas for the LPC to consider when recommending 2027 National Living Wage and National Minimum Wage rates.
The current benchmark of two-thirds of median hourly earnings is recognised as a measure of low hourly pay and retained as the key reference point for future rates. In setting rates, LPC should consider the following 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
The Government asks the LPC to recommend rates for people aged under 18 and apprentices which should be set at a level which supports the employment prospects for each group. In addition, the LPC should collect evidence on the effectiveness and operation of the apprentice National Minimum Wage to help inform any possible future reforms. Finally, Government asks the LPC to recommend a new accommodation offset rate.
The LPC is planning a series of regional visits to obtain feedback from employers and individuals: More information: Low Pay Commission regional visits 2026 - GOV.UK.
