National Living Wage update
06th August 2025
Julia Hanna
If, like many of our clients you’re moving into 2026 budgeting soon, you’ll be keen to get a handle on the likely impact of the National Living Wage (NLW) on employee pay and your people costs.
First a recap, the NLW (for those 21yrs +) is currently £12.21. It is set by government, advised by the Low Pay Commission (LPC) and legally mandated. The Real Living Wage (RLW) is voluntary and currently £12.60 per hour (£13.85 in London).
By way of an update, the LPC announced yesterday that its central estimate for April 2026 is £12.71 per hour (within a range of £12.55 and £12.86 depending on economic conditions). This reflects a stronger than expected average wage growth so far this year, and government’s aim of a NLW of at least 2/3rds of median earnings.
The announcement follows Aldi’s recent increase to £13 per hour minimum from September (£14.33 inside the M25) which exceeds the current RLW.
The LPC recommendations take account of many factors to ensure that it delivers for “workers and businesses” so watch this space for the final announcement expected in October.
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At Verditer, we are specialists in creating a transparent approach to pay and reward. Do get in touch if you’d like our help with developing a reward strategy, or pay foundations such as pay benchmarking and pay structures.
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