Estimated National Living Wage (NLW) for April 2026

The Government’s Low Pay Commission (LPC) has confirmed its central estimate for the April 2026 National Living Wage (NLW).

They’re currently estimating a 4.1% increase to the NLW, taking the rate to £12.71.

This estimated increase looks to ensure that NLW doesn’t fall below two-thirds of median earnings.

However, the LPC did highlight challenges with NLW predictions, flagging that their projected range around the central estimate runs from £12.55 to £12.86.

Both the central estimate and ranges have increased since they were previously published alongside the May consultation.

The LPC stated that the predicted increase is due to ‘average wage growth’ that has proven stronger than forecast, which in turn has also increased the forecast for wage growth in 2025.

Commitment to raising the living standards

In relation to NLW, the LPC stated: “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.”

Current minimum wage rates

As of 1 April 2025, the current National Minimum Wage (NMW) rates are as follows.

What are the next steps?

TheLow Pay Commission added that their recommendations are purely formulaic, as they are required to take economic conditions into account.

As such, they’ve advised that these figures should be taken as indicative only.

It was confirmed that by the end of October 2025, they will provide their advice to the Government on the official NLW and NMW rates for April 2026.

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Stephanie Coward

Managing Director, HCM

Stephanie Coward is Managing Director for HCM at IRIS, where she leads the strategy, innovation and growth of the organisation’s HR and payroll portfolio. She is responsible for positioning IRIS as a trusted partner to HR professionals and ensuring its solutions support the evolving needs of modern workforces.

With more than 25 years’ experience in the technology sector, Stephanie brings deep commercial and operational expertise, with a passion for improving the employee experience through technology.

Stephanie is committed to advancing IRIS’ HCM offering and helping organisations build more resilient, empowered workforces.