The Low Pay Commission is the independent body that advises the Government on the level of the minimum wage. We have been asked to recommend in October of this year the National Minimum Wage and National Living Wage rates to apply from April 2020.
The current target for the National Living Wage will be met (subject to sustained economic growth) by April 2020. We are also seeking views on the path for the minimum wage beyond 2020. In the 2018 Budget, the Chancellor stated his intention to give the Low Pay Commission a new remit beyond 2020. We are inviting views on how the existing target for the National Living Wage has worked and on potential future arrangements.
What we would like evidence on
For the NLW, we are seeking evidence in order to advise on the viability of the stated target - 60 per cent of median earnings by 2020. The NLW has been introduced by the Government to raise pay and productivity, and - unlike for the other minimum wage rates - there is some tolerance of job loss. We are particularly interested in:
- Views on the affordability and effects of an increase to the ‘on target’ rate for April 2020 – currently around £8.67.
- Evidence of the impact of increases in the NLW since its introduction – including the April 2019 uprating – on workers, employers, the labour market and the economy.
- Evidence of how employers are seeking to improve productivity.
- Evidence on how the economic outlook is affected by the process of leaving the European Union.
For the other rates – affecting workers under 25 and apprentices – we are seeking evidence to make recommendations on our traditional basis of ‘helping raise the pay for as many low-paid workers as possible without damaging their employment prospects’.
Who we would like evidence from
We are seeking evidence from the widest possible range of contributors: employers, workers, representatives, experts and the public, with a particular interest in sectors that either make up a lot of minimum wage workers (e.g. retail and hospitality) or where a high proportion of workers are on the minimum wage (e.g. social care).
How to respond
Download the consultation letter for details on the evidence we are seeking and a list of questions to consider,
You can respond to the consultation by e-mail or by post using the details below. The consultation closes on Friday 7 June.
In addition to this written consultation, the Low Pay Commission also conducts a series of visits around the UK, and holds bilateral meetings to gather evidence from individual organisations. Find out more about the visits on our website and blog. If you want to arrange a meeting, email using the details below.
National Minimum Wage rates
|Minimum wage rate||Rate to 31 March 2019||Rate from 1 April 2019|
|National Living Wage||£7.83||£8.21|
|21-24 Year Old Rate||£7.38||£7.70|
|18-20 Year Old Rate||£5.90||£6.15|
|16-17 Year Old Rate||£4.20||£4.35|
Ways to respond
Low Pay Commission
2-6 Salisbury Square