Low Pay Commission

The report outlines evidence and criteria for determining whether to raise the National Living Wage above two-thirds of median earnings. It highlights the need for clear policy aims, noting divergent views between worker representatives who support a higher target and employers who fear job impacts. Analysis shows the NLW has improved low‑paid workers’ earnings with limited employment effects, though risks grow with more ambitious targets and uncertain economic conditions. The UK’s high international ranking reduces available comparative evidence. The report stresses that future decisions should consider economic responsiveness, labour‑market conditions, and alignment with wider government policies.