The National Living Wage may increase to £ 12.86 per hour next year, as the official advisory committee has estimated, as it gives new details about it Annual review on data.
Low Pay Commission (LPC) says that the minister is committed to giving “real living wages” in his latest remit report, which minimizes the minimum wage of Britain Workers should be paid.
currently, National living wages £ 12.21 per hour, equivalent to £ 451.77 a week. LPC estimates that it will require to increase £ 12.71 per hour in 2026 to fall below two-thirds in 2026. IncomeWhich is the threshold that the government hopes that it will be up.
But it can move up to £ 12.86 per hour, or between £ 12.55 per hour depending on the changing economic conditions.
Across the 37-hour week, £ 12.86 per hour will mean £ 475.82 a week, £ 24.05 at the rate of this year. Regarding one year, it will be £ 1,250.60 more in an employee’s pocket.
At the lower end, the increase of £ 12.55 per hour will be equal to £ 464.35, a weekly increase of £ 12.58. This would mean very little £ 654.16 at the end of the year.
Established in 1997, LPC provides recommendations to ministers in each autumn, how it assumes that minimum wages should be replaced.
The government eventually determines the minimum wage rates for the following April after this advice.
A letter of Deputy Prime Minister Angela Rener And Business Secretary Jonathan Reynolds said that the committee should keep in mind Cost of living As it reviews the wages of national living.
The two senior ministers stressed that the government was “committed to ensure that the minimum wage is a real living wage”.
He said: “We continue to recognize that our ambition should be supported by evidence, and that the minimum wage rate should be in line with providing inclusive growth for people working and businesses.
“We are therefore asking LPC to recommend a national living wage rate which is for at least two-thirds of the UK average earnings. Worker 21 years and older to apply from next April, which affects the cost of life, impact on employment and development in the broad economy. ,
Somewhere else, the government is moving ahead with a plan to abolish “discriminatory” age banding for minimal wages, and has increased LPC remit to investigate it.
It said that LPC will consult EmployersTrade unions and workers by the wages of national living and the minimum wage rate for children aged 18 to 20 years, which is currently £ 10.
There is also a minimum wage for people below 18 years of £ 7.55.
LPC will report back to the government with advice in October how much the minimum wage increases in 2026.
The Resolution Foundation, a think tank that works to improve the standard of living, suggested that the government is using the “ambitious language” when the government increased the minimum wage, but was actually adopting a cautious approach.
Nye cominetti, leading economist of the think tank, said: “Despite the government’s ambitious language, around the ‘paying a real living wages’, the new remit for the low pay commission represents a stable-to-go-goal approach for adult rates, after the new Remits for the low pay commission growing rapidly in the years before 2024.
“This precaution has been given worryingly to the labor market data, thanks to the government’s increase in the employer national insurance contribution in April.”
