Low Pay Commission

Friday 16th March 2018

The Low Pay Commission (LPC) is an independent body that advises the Government on the national minimum wage (NMW) and national living wage (NLW).  The Government normally increases the NMW and NLW in line with the LPC’s recommendations.

The LPC opened a new consultation last week seeking views on the current rates and the rates that should apply from April 2019.  The LPC is also conducting a review of the minimum wage structure, encompassing a review of the youth rates given the increase of young people’s participation in work and education, and a review of the apprentice rate. This is in light of significant policy changes to apprenticeship policy in England.

In addition, following the publication of the Taylor Review, the consultation is also gathering views on whether to introduce a higher minimum wage rate for hours not guaranteed by an individual’s contract (as is often the case with zero hours contract workers).  The consultation will close in June 2018 with recommendations being put to the Government in October 2018.

We will, of course, report on the outcome of the consultation more fully later in the year.  In the meantime, if you would like the LPC to consider the effect that their proposals may have on your business and you would like to participate in the consultation, you can download the consultation letter which gives details on what evidence the LPC is looking for and for a list of questions to consider. The letter and further details of how to respond to the consultation, can be found here https://www.gov.uk/government/consultations/low-pay-commission-consultation-2018.