LPC minimum wage rates 2023 full report

24 November 2022

We received confirmation that the government would accept, in full, the Low Pay Commission’s (LPC’s) national living wage and minimum wage recommendations in the Autumn Statement. This sees the national living wage (NLW) reach £10.42 per hour, a 9.7% increase.

The chair of the LPC, Bryan Sanderson, signed the recommendation letter and includes some background to decisions. On the NLW it was notes the need for balance, Sanderson said:

Both employers and workers are worried about rising costs. For workers, an NLW rise normally guarantees their pay rises faster than prices, protecting their living standards. In the current context this is more important than ever. But for employers, rising wages are another bill alongside their energy, raw materials and other costs that can threaten jobs or may need to be passed on through higher prices.”

The full report is also available and goes into much more detail regarding the feedback received from stakeholders. The CIPP are proud to have held roundtable events with the LPC to allow our members to give qualitative feedback directly to commissioners. If you are interested, please keep an eye out for future roundtable invites which will be sent to full, fellow and chartered members.

The LPC’s remit is to achieve a NLW of two-thirds of median income to those aged 21 and over by 2024. The current recommendation of £10.42 is estimated to be 63.9% of median hourly pay, getting close to the target figure. Due to uncertainty over future wages the estimate for the 2024 rate currently spans from £10.82 to £11.53.

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