Minimum wage increases from April 2019

01 November 2018

Budget 2018 confirmed that the Low Pay Commission (LPC) recommendations to increases in minimum wage were accepted in full.

It was also acknowledgement that the LPC will need a new remit when it comes to monitoring the National Living Wage (NLW) going forward following the fulfilment of the current remit of monitoring the delivery of achieving a rate of 60% of median earnings by April 2020. The NLW is on target to achieve this and based on current forecasts the LPC estimates that it will reach this target at a rate of £8.62 in 2020.

The LPC’s rate recommendations comprised:

 

Current

From April 2019

Increase

NLW

£7.83

£8.21

4.9%

21-24 rate

£7.38

£7.70

4.3%

18-20 rate

£5.90

£6.15

4.2%

16-17 rate

£4.20

£4.35

3.6%

Apprentice rate

£3.70

£3.90

5.4%

Accommodation offset

£7.00

£7.55

7.9%

The LPC 2018 Report, containing the underpinning analysis and evidence used to make these recommendations, will be published on 27 November 2018. In previous years it has been published on the same day as the rates were announced, but the early Budget means that this has not been possible this year.

 

Read the CIPP’s summary of Budget 2018 for further details of announcements.