Low Pay Commission consultation 2019
15 March 2019
The Low Pay Commission (LPC) has opened its annual consultation on the levels of the National Minimum Wage rates, including the National Living Wage.
The LPC is the independent body that advises the Government on the level of the minimum wage. It has 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.
The LPC is also seeking views on how the existing target for the National Living Wage has worked and on potential future arrangements.
The LPC is particularly interested in:
Views on the affordability and effects of an increase to the ‘on target’ rate for April 2020 – currently around £8.63.
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 – the LPC is seeking evidence to make recommendations on its traditional basis of ‘helping raise the pay for as many low-paid workers as possible without damaging their employment prospects’.
In addition to this consultation the LPC has its annual programme of visits around the UK (published in February) which allows them to hear directly from workers and businesses as to how their minimum wage recommendations are working ‘on the ground’.
Find out more about the visits through the LPC’s blog.
The Policy team will be publishing a survey in due course to gather views and evidence from the payroll profession. We will also be holding a Think Tank roundtable event. The date and venue are yet to be confirmed but if you would like to register your interest to attend, please email us at policy using LPC as the subject.
The closing date for submission is 7 June 2019. All details and a full list of consultation questions can be found by following this link and downloading the letter within.