What the Latest National Living Wage Estimate Means for Social Care
We’re happy to highlight an important update from the Low Pay Commission (LPC) published on 5 August 2025, which sheds light on what the National Living Wage (NLW) might look like next year and what it means for workers across sectors, including social care.
Key Highlights
The LPC’s central projection indicates that to ensure the NLW remains at least two-thirds of median earnings, a 4.1% increase to £12.71 per hour is needed from April 2026.
This estimate sits within a forecasted range of £12.55 to £12.86, reflecting stronger-than-expected wage growth in 2025.
The LPC will consider broader economic circumstances, not just calculated formulas, before finalising its recommendation to the government at the end of October 2025.
Why It Matters for the Care Sector
As a cornerstone of our community, the care sector often employs individuals earning around the NLW. Here’s what the proposed increase could mean:
Positive for employees: A raise to £12.71 would directly boost take-home pay for many care workers, improving financial stability and morale.
Considerations for employers: Organisations will need to assess the impact on operating budgets and staffing costs, especially under tight financial constraints.
What to Keep in Mind
These figures are estimates, not confirmed rates. Final NLW decisions come in the autumn and take effect the following April.
We'll continue to monitor developments—particularly the LPC’s advice to government in October and share updates to help our community plan ahead.