The Low Pay Commission have published a new consultation as part of its evidence gathering process on the impact of minimum wage rates ahead of its recommendations to the Government later this year.  

Last week, the Government set the remit for the Low Pay Commission in the coming year, stating that the Government’s intention is for the National Living Wage to continue to track with two-thirds of median earnings. ACS responded to the publication of the new remit for 2024, calling for more discretion over wage recommendations to account for labour market and business confidence changes so as not to damage genuinely flexible work opportunities with responsible employers in the convenience sector.

The rates of the National Living Wage and National Minimum Wage changed on April 1st. The current rates are as follows:

• National Living Wage – applies to anyone aged 21 and over: £11.44 per hour (up 10% from £10.42)
• National Minimum Wage – applies to young workers aged 18-20: £8.60 per hour (up 14.8% from £7.49)
• National Minimum Wage – applies to young workers aged 16-17: £6.40 per hour (up 21.2% from £5.28)

In its consultation, the Low Pay Commission is looking for evidence on the following areas:

• The affordability and effects of an increase in April 2025 to an NLW rate within the range of £11.61 and £12.18 (with a central estimate of £11.89).
• The impact of increases in the NLW in April 2024 on workers, employers, the labour market and economy.
• The impact of 21-22 year olds becoming entitled to the NLW in April 2024.
• The effect of the minimum wage increases for younger workers on their employment prospects. The effects of this year’s increase in the Apprentice Rate, and its continued alignment with the 16-17 Year Old Rate.
   

ACS chief executive James Lowman said: “We will continue to work with the Low Pay Commission as they gather evidence about the broad economic and labour market conditions faced by convenience workers and businesses, as well how increasing the National Living Wage and National Minimum Wage will impact convenience employees across the UK. It is essential that convenience stores can continue to provide local, secure employment that features genuine two-sided flexibility.”

The Low Pay Commission’s consultation closes on June 7th. ACS will be responding to the Low Pay Commission’s consultation in due course. You can read the LPC’s list of questions here.