The Low Pay Commission (LPC) has published a consultation seeking views on the recommendations it should make to government later in the year in relation to the hourly rates for the National Minimum Wage (NMW) and the National Living Wage (NLW) from April 2024.
The LPC - which is independent of government - is particularly interested in receiving evidence about the following:
- The affordability and effects of an increase in April 2024 to a NLW rate within the range of between £10.90 and £11.43 with a central estimate of £11.16 per hour.
- The impact of the NLW’s increase to £10.42 per hour on workers, employers, the labour market and economy.
- The impact of lowering the NLW age threshold from 23 to 21 years of age and the removal of the 21–22 year-old rate.
- The effect of the NMW on young people and their employment prospects.
- The effects of this year’s increase in the apprentice rate, and its continued alignment with the 16-17 year-old rate.
- Awareness of, use and impacts of the accommodation offset.
In respect of minimum wages after 2024, it wants to receive views about:
- The purpose of the NMW and NLW as well as the role of the Low Pay Commission.
- Whether a separate minimum wage rate for apprentices is necessary.
- The range of policy options for the minimum wage and how these might work.
- The potential effects of further minimum wage increases and the risks it should consider.
- The evidence that should support future policy decisions.
On 1 April 2023, the NLW will increase to £10.42 per hour while the NMW will increase for younger workers. The 21–22 year-old rate will increase to £10.18; the 18-20 year-old rate will increase to £7.49 and the 16-17 year old rate will rise to £5.28.
The consultation closes at 11.45pm on 9 June 2023.
To access the consultation document, click here.