CAP has responded to the Low Pay Commission consultation

CAP has responded to the Low Pay Commission consultation 2026

Key points:

• CAP welcomes the increase in the National Living Wage, but despite the increase in the National Living Wage in April, in May 2026, CAP still saw that some of the clients CAP are supporting who work full time and receive all of their income from wages still had a deficit budget.
• Poverty is increasingly affecting working households. Many people continue to struggle to afford essentials despite being in work,
• Recent increases in the National Living Wage have been exceeded by increases in essential costs, such as energy bills. For many households, the NLW increase is marginal in the context of rising living costs.
• People face a range of barriers to entering and progressing in the labour market. Barriers include:
  • Physical health
  • Confidence
  • Mental Health
  • Caring responsibilities
  • Costs
  • Mental load
  • Availability
  • Time commitment
  • Risk
  • Contacts and connections
  • Childcare

  • Transport

• CAP continues to support the Government’s objective of aligning all adult minimum wage rates with the National Living Wage, removing discriminatory age brackets.
• The interaction between the minimum wage and the social security system, including Universal Credit, must be considered holistically. Many low-paid workers rely on a combination of wages and benefits, and the complexity of the system creates additional barriers.