CIPP Survey ? the impact and rates of the NLW and NMW ? have your views for the future changed?
06 July 2016
Background
The Low Pay Commission (LPC) recently published a consultation which seeks to gather evidence to inform the Low Pay Commission's report on the path of the National Living Wage and the National Minimum Wage rates to apply from April 2017.
Set against the background of the recent introduction of the National Living Wage (NLW), a higher rate for workers aged 25 and over, the Low Pay Commission have been asked also to advise on the path to 60 per cent of median earnings by 2020 ‘subject to sustained economic growth’.
For the rates affecting those aged under 25 and apprentices, the LPC have been asked to continue to make recommendations on their traditional basis of ‘helping as many low-paid workers as possible without damaging their employment prospects’. All the rates are being aligned to run from April 2017.
On the National Living Wage, the LPC are particularly interested in:
- evidence on the effect of the introductory rate of £7.20 on workers, employers, the labour market and the economy - including how firms and workers are adjusting and impacts on pay, terms and conditions, income, hours, progression, employment and competitiveness;
- views of the projected ‘on target’ rate for April 2017. The figure will change between now and the autumn as new pay data and forecasts are published but the current estimate is to be around £7.60 in April 2017, rising to just over £9 by 2020.
- views on the LPC’s proposed approach to making recommendations on the NLW (set out in the consultation letter).
On the other minimum wage rates (21-24, 18-20, 16-17, apprentices), the LPC are particularly interested in:
- views on how to adjust the level of the recommendations given that an April 2017 increase will come six months after the forthcoming October 2016 increases. This reflects the fact that the NLW was introduced on a different calendar to the other rates whose schedule is being revised to align with it. The consequence is two increases in 18 months rather than the 24 that would otherwise apply.
- evidence on the impact of the rates on younger workers’ employment prospects including evidence on how widely the new 21-24 Year Old Rate is used, and whether the NLW has affected the employment prospects of workers aged under 25.
Your views and evidence from this survey will feed in to the CIPP written response and provide statistical data to support the views that were gathered at a CIPP roundtable held in London on 14 June 2016.
The survey will close on Friday 11 July. Thank you for your input to this survey, we estimate that it will take between 10 minutes to 25 minutes to complete depending on additional supporting narrative and/or data you provide.