This month, the Department for Business and Trade published a policy paper in which it sets out the areas of consideration for the Low Pay Commission (LPC), when determining recommended both National Minimum Wage (NMW) and National Living Wage (NLW) levels.
We know that with the introduction of the Employment Rights Bill, the Government set out its intentions for delivering higher living standards and specifically committed to deliver a genuine living wage.
In their policy paper, the Department for Business and Trade requested that the LPC make recommendations to the Government on the appropriate levels of NMW and NLW for April 2026 that minimise impacts on employment prospects for workers and consider the risks of youth unemployment in light of emerging and concerning trends for this demographic.
The LPC have been given until the end of October 2025 in which to provide their advice and response to the policy paper. As in previous years, it is usually around the Autumn that the Government confirm the new minimum pay rates for the following April.
Government Support for Small Businesses
At the end of July 2025, the Department for Business and Trade (DBT) published a policy paper in which it set out the long-term plan for supporting small businesses, and included are two commitments that would impact payroll. These are:
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The Government would raise the limit at which small businesses are to start paying employer National Insurance from £5,000 to £10,500
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Reforming the previous Apprenticeship Levy as a new Growth and Skills Levy
More broadly, the policy paper also commits to wider business recommendations:
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Legislation to end the scourge of late payments
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Cut the admin costs of regulation for businesses by 25%
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Expand start-up loans by offering 69,000 new businesses the chance of finance and mentoring
