Low Pay Commission – Consultation on April 2022 National Minimum Wage rates

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 they will make this autumn on the 2022 minimum wage rates, they are seeking evidence on the impact of the NLW and NMW. All interested parties are invited to submit evidence.

What the LPC are seeking evidence on

The 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, they are 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 year they are particularly interested in:

  • The affordability and effects of an increase in April 2022 to an NLW rate of £9.42. This is our current central projection for next April’s rate, with a likely range of 7 pence above or below this figure.
  • Views on the NLW pathway to 2024. Based on forecasts, the 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.
  • They 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.

See the consultation letter for details on the evidence they are seeking and a list of questions to consider.

The LPC are holding online meetings with groups affected by the minimum wage throughout the consultation period. Please contact them if you would be interested in talking to us directly about your experience of the minimum wage.

How to respond

Responses are requested by Email to: lpc@lowpay.gov.uk

PAYadvice.UK 2/4/2021

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