Low Pay Commission consultation 2023
Detail of outcome
This consultation has now closed. New rates of the National Minimum Wage, including the National Living Wage, were announced at the Autumn Statement and will come into force from April 2024. The Low Pay Commission published its annual report on Monday 4 March, which summarises the evidence submitted in our 2023 consultation.
The minimum wage rates in force from 1 April 2024 are set out below.
| NMW rate from 1 April 2024 | Increase in pence | Percentage increase | |
|---|---|---|---|
| National Living Wage (21 and over) | £ 11.44 | £ 1.02 | 9.8% |
| 18-20 Year Old Rate | £ 8.60 | £ 1.11 | 14.8% |
| 16-17 Year Old Rate | £ 6.40 | £ 1.12 | 21.2% |
| Apprentice Rate | £ 6.40 | £ 1.12 | 21.2% |
| Accommodation Offset | £ 9.99 | £ 0.89 | 9.8% |
Original consultation
Consultation description
The Low Pay Commission (LPC) is the independent body which advises the Government on the levels of the National Minimum Wage (NMW), including the National Living Wage (NLW).
We are seeking input to shape the recommendations we will make to the Government this autumn. These will cover the levels of the NMW, including the NLW. In April 2024, we anticipate the on-course NLW will be between £10.90 and £11.43, with a central estimate of £11.16. We are also gathering evidence to inform the Government’s decisions on policy options for the future beyond 2024.
What we’re seeking evidence on
We are seeking evidence on the broad economic and labour market conditions that workers and businesses are facing, as well as the specific impacts of the rates themselves.
We are particularly interested in evidence on the following:
-
The affordability and effects of an increase in April 2024 to an NLW rate within the on-course range of between £10.90 and £11.43 with a central estimate of £11.16.
-
The impact of the NLW’s increase to £10.42 on workers, employers, the labour market and economy.
-
The impact of lowering the NLW age threshold to 21 years of age and the removal of the 21–22 Year Old Rate.
-
The effect of the minimum wage 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, use and impacts of the Accommodation Offset.
In respect of minimum wages after 2024, we are interested in views on the following:
-
The purpose of the NMW and NLW, and 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 we should consider.
-
The evidence that should support future policy decisions.
The rates of the NMW and NLW from 1 April 2023 are as follows:
| Rate from April 2023 | Previous rate (April 2022 to March 2023) | Increase | |
|---|---|---|---|
| National Living Wage | £10.42 | £9.50 | 9.7% |
| 21-22 Year Old Rate | £10.18 | £9.18 | 10.9% |
| 18-20 Year Old Rate | £7.49 | £6.83 | 9.7% |
| 16-17 Year Old Rate | £5.28 | £4.81 | 9.7% |
| Apprentice Rate | £5.28 | £4.81 | 9.7% |
| Accommodation Offset | £9.10 | £8.70 | 4.6% |
Documents
Last updated 5 March 2024 + show all updates
-
The final outcomes of this consultation have now been published.
-
e-mail corrected as lpc@lowpay.gov.uk in email box
-
First published.