Tender

The impact of the minimum wage on productivity (longer-term projects)

LOW PAY COMMISSION

This public procurement record has 1 release in its history.

Tender

19 Dec 2025 at 20:45

UK4 - Tender Notice
Summary of the contracting process

The Low Pay Commission (LPC), a central government public authority in the UK, has issued a tender for research services aimed at studying the long-term impact of the National Minimum Wage and National Living Wage on productivity. This open competition process relates to services within the research and development category and is located in London. Currently in the tender stage, the procurement seeks to award a contract worth up to £96,000 including VAT, with project completion required by the end of December 2027. The submission deadline for bids is set for 2nd February 2026, with inquiries to be resolved by 12th January 2026. Interested parties are instructed to submit tenders via email as electronic submission is not permitted.

This tender presents significant growth opportunities for businesses with expertise in economic research, particularly those focusing on labour market dynamics and productivity analysis. SMEs and voluntary, community and social enterprises (VCSEs) are particularly encouraged to participate. With the evaluation based on the Most Advantageous Tender methodology, combining quality and price, businesses with a strong understanding of minimum wage impacts and innovative research approaches will be well-positioned to secure this contract. The successful tenderer will contribute to filling critical knowledge gaps, potentially influencing future wage policy and economic strategy decisions within the UK.

How relevant is this notice?

Notice Information

Notice Title

The impact of the minimum wage on productivity (longer-term projects)

Notice Description

The Low Pay Commission (LPC) invites tenders for research investigating the impact of the National Minimum Wage (NMW), including the National Living Wage (NLW) on productivity. We are interested in research that considers both within- and between- firm productivity. This call for research is for projects that will deliver final findings in September 2027 and interim findings in September 2026. If your proposed projects could deliver final findings to a shorter timeframe, we strongly encourage you to bid under LPC 2025/05 (open call for 1-year projects). 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. You can view our most recent published remit for 2025 here. 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. There are important links between the minimum wage and productivity. The minimum wage may boost productivity by encouraging employers to invest in capital or skills, or by accelerating the movement of resources to more productive parts of the economy. On the other hand we often hear from small businesses that minimum wage increases reduce their ability to invest in new technology. At the same time, productivity improvements driven by other factors may reduce the risk of negative adjustments to minimum wage increases, such as reduced employment. Past research in the UK and studies from other countries have seen mixed findings on both the existence of and mechanisms for productivity gains. This research will fill gaps in our understanding of the relationship between the minimum wage and productivity in the UK, using the latest available data and methods. It will complement the LPC's own analysis of the economy and labour market. The estimated maximum cost of the contract is PS80,000 (exclusive of VAT; PS96,000 including VAT). We recognise that proposed projects may vary significantly in their scale and resource requirements and anticipate bids in the range PS40,000 to PS80,000.

Notice Details

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-05fb04
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/085184-2025
Current Stage
Tender
All Stages
Tender

Procurement Classification

Notice Type
UK4 - Tender Notice
Procurement Type
Standard
Procurement Category
Services
Procurement Method
Open
Procurement Method Details
Below threshold - open competition
Tender Suitability
SME, VCSE
Awardee Scale
Not specified

Common Procurement Vocabulary (CPV)

CPV Divisions

73 - Research and development services and related consultancy services

CPV Codes

73000000 - Research and development services and related consultancy services

Notice Value(s)

Tender Value
£80,000 Under £100K
Lots Value
£80,000 Under £100K
Awards Value
Not specified
Contracts Value
Not specified

Notice Dates

Publication Date
19 Dec 20251 weeks ago
Submission Deadline
2 Feb 20262 months to go
Future Notice Date
Not specified
Award Date
Not specified
Contract Period
2 Mar 2026 - 31 Dec 2027 1-2 years
Recurrence
Not specified

Notice Status

Tender Status
Active
Lots Status
Active
Awards Status
Not Specified
Contracts Status
Not Specified

Buyer & Supplier

Contracting Authority (Buyer)

Main Buyer
LOW PAY COMMISSION
Contact Name
Tim Butcher
Contact Email
lpc@lowpay.gov.uk
Contact Phone
Not specified

Buyer Location

Locality
LONDON
Postcode
E14 4PU
Post Town
East London
Country
England
Major Region (ITL 1)
TLI London
Basic Region (ITL 2)
TLI4 Inner London - East
Small Region (ITL 3)
TLI42 Tower Hamlets
Delivery Location
Not specified
Local Authority
Tower Hamlets
Electoral Ward
Canary Wharf
Westminster Constituency
Poplar and Limehouse

Further Information

Notice Documents

Open Contracting Data Standard (OCDS)

View full OCDS Record for this contracting process

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The Open Contracting Data Standard (OCDS) is a framework designed to increase transparency and access to public procurement data in the public sector. It is widely used by governments and organisations worldwide to report on procurement processes and contracts. 

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