The Low Pay Commission (LPC) is the independent body which advises Government on the levels of the National Living Wage (NLW) and National Minimum Wage (NMW). To help shape the recommendations on the 2022 minimum wage rates, the Low Pay Commission is seeking evidence on the impact of the NLW and NMW.
The consultation is seeking views on business conditions and the economic outlook, in light of the Covid-19 pandemic and the support measures the Government has implemented in response to it.
This includes:
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The affordability and effects of an increase in April 2022 to an NLW rate of £9.42. This is the current central projection for next April’s rate, with a likely range of 7 pence above or below this figure
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Views on the NLW pathway to 2024. Based on forecasts, our current central projection for the April 2024 NLW rate is £10.33, with a likely range of 23 pence above or below this figure. The age threshold for the NLW is also due to come down to 21 by 2024 at the latest
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LPC also wants to hear about the effects of recent increases in the NLW and other rates, and their impacts in particular on employment and hours, pay and benefits, productivity, prices and profits.
Consultation details:
ACS' submission:
