Open consultation: Low Pay Commission consultation 2020

Consultation description

The Low Pay Commission (LPC) is the independent body that advises the Government on the level of the minimum wage. We have been asked to recommend in October this year the National Minimum Wage (NMW) and National Living Wage (NLW) rates to apply from April 2021. All interested parties are invited to submit evidence to our consultation by Thursday 4 June 2020.

From 1 April 2020, the NLW will increase to £8.72, reaching the target of 60 per cent of median earnings set by the Government in 2015. The Government have now asked the LPC to increase the NLW towards a new target of two-thirds of median earnings by 2024. Alongside this, the age threshold for the NLW will be reduced from its current level of 25, to 23 in 2021 and then to 21 by 2024.

For the remaining NMW rates (the 21-22-Year-Old Rate, the 18-20-Year-Old Rate, the 16-17-Year-Old Rate and the Apprentice Rate, we are consulting on our usual approach of raising the rate as high as possible without damaging employment.

Read the Government’s 2020 remit for the LPC

What we would like evidence on

Our consultation letter contains a full list of the topics and questions we are seeking evidence on. Our main concern is to gather evidence on the effects on employers and workers of the recent increases in the NMW and NLW. As each year, we are seeking views on business conditions and the economic outlook, especially given factors such as the ongoing coronavirus outbreak.

This year we are particularly interested in:

• The affordability and effects of an increase in April 2021 to an NLW rate of £9.21. This is our current central projection for next April’s rate, with a likely range of 6 pence above or below this figure.

• Views on the LPC’s remit to 2024, involving a new NLW target of two-thirds of median earnings and lowering the NLW age threshold to 21. Based on forecasts, our current central projection for the April 2024 NLW rate is £10.69, with a likely range of 30 pence above or below this figure.

• Views on potential changes to the Apprentice Rate and their effects in particular on younger (16-18 year old) apprentices. Our consultation letter sets out the context for these proposals, and a separate information note is available below.

We also want 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.

Who we would like evidence from

Download the consultation letter for details on the evidence we are seeking and a list of questions to consider,

You can respond to the consultation by e-mail or by post using the details below. The consultation closes on Friday 7 June.

In addition to this written consultation, the Low Pay Commission also conducts a series of visits around the UK, and holds bilateral meetings to gather evidence from individual organisations. Find out more about the visits on our website and blog. If you want to arrange a meeting, email using the details below.

How to respond

You can send us your response by email or by post.

General enquiries

8th Floor
Fleetbank House
2-6 Salisbury Square
London
EC4Y 8JX

Email[email protected]

Telephone 020 7211 8119

You can also contribute to our consultation by taking part in our programme of regional visits, where we meet with workers, employers and other interested parties directly.

Documents

LPC 2020 consultation questions

HTML

Note on apprentice pay

PDF, 93.5KB, 2 pages

Ways to respond

Email to:

[email protected]

Write to:

Low Pay Commission
8th Floor, Fleetbank House
2-6 Salisbury Square
London
EC4Y 8JX

Published 12 March 2020