Low Pay Commission new remit

On 30th July, the UK Government has now confirmed the new remit for the LPC in making National Minimum Wage (NMW) recommendations, stating:

We ask the Low Pay Commission to recommend a National Living Wage which should apply from April 2025. This should take into account the impact on business, competitiveness, the labour market, the wider economy and the cost of living, including the expected annual trends in inflation between now and March 2026. The Low Pay Commission should ensure that the rate does not drop below two-thirds of UK median earnings for workers aged 21 and over, a recognised measure of low hourly pay.

The LPC was also asked to consider how to narrow the gaps between age bands, with the goal of achieving a single adult rate in the future:

[…] we ask that the Low Pay Commission recommends a National Minimum Wage rate that should apply to 18–20-year-olds from April 2025. This should continue to narrow the gap with the National Living Wage, taking steps year by year in order to achieve a single adult rate. This ambition should be pursued while also taking into account the effects on employment of younger workers, incentives for them to remain in training or education and the wider economy.

You can find the full Policy Paper on this here.