On 28 March 2022, the Low Pay Commission (LPC) opened a consultation seeking views on the national minimum wage (NMW) and national living wage (NLW) rates that should apply from April 2023. The consultation closes on 20 June 2022, and we would encourage you to consider sending a reply and sharing your views.
The Low Pay Commission (LPC) is the independent body which advises the Government on the levels of the National Living Wage (NLW) and National Minimum Wage (NMW).
The LPC’s is keen to gather evidence on the effects on employers and workers of the recent increases in the NMW and NLW, including views on business conditions and the economic outlook in light of the pandemic and the support measures the government has implemented as a response. This year, the LPC is particularly interested in:
- The affordability and effects of increasing the NLW from April 2023 to a rate of £10.32 (within a range of £10.14 to £10.50).
- Views on the NLW pathway to 2024, by which time the age threshold for the NLW is due to come down to 21. Based on forecasts, the LPC’s current central projection for the April 2024 NLW rate is £10.95 (within a range of £10.58 to £11.33).
- The effects of recent increases in the NLW and other rates and their impacts in particular on employment and hours, pay and benefits, productivity, prices and profits.
From 1 April 2022, the NLW will increase from £8.91 to £9.50. The LPC’s recommendations on the NLW will be guided by the Government’s target for the rate to reach two-thirds of median earnings by 2024, taking economic conditions into account.
The material contained in this article is provided for general purposes only and does not constitute legal or other professional advice. Appropriate legal advice should be sought for specific circumstances and before action is taken.
© Miller Rosenfalck LLP, April 2022