12 May 2025
Bira has confirmed it will be responding to the Low Pay Commission’s (LPC) newly launched consultation on the National Living and Minimum Wage rates for 2026.
The LPC consultation, issued this month, invites views from businesses, workers, and stakeholders ahead of its recommendation to the Government later this year.
Each year, the LPC advises ministers on the appropriate wage levels, with the final decision typically announced in the Chancellor’s Autumn Statement.
In its latest consultation, the LPC notes that the National Living Wage (NLW) rose to £12.21 per hour in April 2025 for workers aged 21 and over. This rise met the Government’s target of raising the NLW to two-thirds of median earnings, while also providing a real-terms increase for low-paid workers.
To maintain this threshold in 2026, the LPC estimates a rate between £12.50 and £12.80 would be necessary, with a central forecast of £12.65, which would represent a 3.6% increase on current levels, though the LPC cautions that continued wage growth or economic shifts could alter the final figure.
Andrew Goodacre, CEO of Bira, said: “With many independent retailers already managing tight margins, assessing the potential impact of further wage increases on small businesses is crucial. The consultation process plays a key role in shaping these decisions and Bira is urging its members to share their feedback to ensure their voices are heard.”
The LPC acknowledges the uncertainty in predicting wage growth, given current economic volatility, and will revise its estimates once its official remit is confirmed.
Submissions to the consultation will inform the LPC’s recommendation to the Government, expected to be made public later in 2025.
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