The UK Government wants to bring forward the age at which the (higher) National Living Wage (NLW) is payable and sets the annual remit for the Low Pay Commission
As ICB has reported, the UK Government has committed to abolish the 18-20 year old National Minimum Wage rate. The Low Pay Commission (LPC) produced a report ‘Options for lowering the age of entitlement to the NLW to 18’ suggesting the changes will start in 2027 as follows:
- The NLW will be extended to workers aged 20 and over in April 2027; then
- Extended to workers aged 18 and 19 in 2028 or 2029 (possibly staggered over both years)
This report was updated at the start of March 2026 and does not show this is the implementation timeline. In addition, the LPC remit for advising the Minimum Wage rates from April 2027 was published on 16 March 2026 and clearly states:
The government remains committed to removing the discriminatory age bands for adults and aligning the National Minimum Wage for people aged 18 to 20 years old with the National Living Wage. However, the LPC has full flexibility to determine the pace and ultimate timing of that alignment, with priority being given to the employment prospects of younger workers.
So, it seems the LPC’s remit is now to:
1. Advise the UK Government about the National Living Wage and the National Minimum Wage rates; and
2. Determine the transition timeline
Advising / recommending is not the same as determining.
For Bookkeepers
There are two points to take from the 2026 remit:
- The move to lowering the National Living Wage age from 21 may not start in 2027 as indicated previously; and
- The LPC must report to the UK Government ‘by the end of October 2026’. Which suggests we are looking at a November 2026 UK Budget
