Research relating to the impacts of the minimum wage, 1-year projects (open call)

Award Criteria

Tenders are evaluated using the Most Advantageous Tender (MAT) methodology. This is where the LPC assesses a Tender based on a combination of commercial, quality, and price elements. If the LPC chooses to award the Contract, it shall award the Contract to the Tenderer which submits the highest scoring Tender. The MAT ratio for this tender is: * Commercial criteria: pass/fail * Quality: 80% * Value for money: 20% Further details of the scoring criteria for the weighted elements are available in Section 5 of the Invitation to Tender document.

Description

The Low Pay Commission (LPC) invites tenders for new or innovative research in relation to the National Living Wage (NLW) and the National Minimum Wage (NMW). This call is for projects that would deliver results in September 2027, with a final report due in November 2027. It is published alongside a call for larger-scale projects (LPC 2026/03), which would deliver final results by September 2028. Please carefully consider which is most suitable for your project. The Low Pay Commission is a non-departmental public body that advises the government about the National Minimum Wage (NMW), including the National Living Wage (NLW) and the minimum wage rates for young workers and apprentices. We are responsible for evaluating the effects of the NMW and NLW and making recommendations on future rates. To carry out these functions, our work involves: • carrying out extensive research and consultation with employers, workers and their representatives and taking written and oral evidence from a wide range of organisations; • analysing relevant data to understand the state of the economy and labour market and the impact of the minimum wage; • commissioning research projects into these questions. This research will fill gaps in our current understanding of the impacts of the minimum wage, particularly the increases in the minimum wage rates since 2019. It will complement the LPC's own analysis of pay, the labour market and the broader economy and sit alongside other pieces of commissioned research. We are aware that the pandemic and its aftermath have disrupted many of the usual data sources upon which we rely. However, there have also been recent developments in new data sources, and in data linking. We are keen to consider tenders that can take advantage of these. A list of suggested topics for research is provided in Section A2 of the Invitation to Tender document. However, we recognise that there may be areas of investigation worth pursuing that we have not yet identified, or which have not previously been considered in great depth. Researchers who believe that they have a worthwhile proposal that would fall into these categories are welcome to submit it for consideration. We would also encourage proposals from those who wish to extend current research on the impact of the minimum wage, whether that original research was funded by us or another organisation. We will fund up to three projects under this call. The maximum estimated budget for each project is £60,000 excluding VAT (£75,000 including VAT); however, we welcome tenders for smaller projects. Please note that we are only able to evaluate complete tenders. The components of a complete tender are detailed in Section 5, Part E of the Invitation to Tender document. They include written responses addressing the three quality criteria: understanding the requirements and context (A01), methodology and approach (A02) and ability to deliver (A03); a detailed pricing schedule and completion/provision of relevant documents to fulfil the commercial criteria. There is global interest among policymakers in the impact of the NLW. The findings from this research will directly inform policy decisions touching the lives of millions of workers and thousands of businesses as well as contributing to policy formation in the UK and beyond.

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