The Low Pay Commission (LPC) has opened a consultation seeking views on existing national minimum wage (NMW) and national living wage (NLW) rates and the rates that should apply from April 2023. The consultation will close on 20 June 2022.

The LPC’s main concern is to gather evidence on the effects on employers and workers of the recent increases in the NMW and NLW. It 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 year, the LPC is particularly interested in:

• The affordability and effects of increasing the NLW from April 2023 to a rate of £10.32 (within a range of £10.14 to £10.50).
• Views on the NLW pathway to 2024, by which time the age threshold for the NLW is due to come down to 21. Based on forecasts, the LPC’s current central projection for the April 2024 NLW rate is £10.95 (within a range of £10.58 to £11.33).
• 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.

In terms of the current rates, the NLW and NMW rates from 1 April 2022 are:

	Rate from April 2022	Rate from April 2021 to March 2022	Increase
National Living Wage	£9.50	£8.91	6.6%
21-22 Year Old Rate	£9.18	£8.36	9.8%
18-20 Year Old Rate	£6.83	£6.56	4.1%
16-17 Year Old Rate	£4.81	£4.62	4.1%
Apprentice Rate	£4.81	£4.30	11.9%
Accommodation Offset	£8.70	£8.36	4.1%

Be sure to have your say as the government normally increases the NMW and NLW in line with the LPC’s recommendations. Responses are to be submitted by email to lpc@lowpay.gov.uk

If you would like more information on the topics addressed in this article or any other aspect of employment law, please contact us on 02920 345511 or at salford@berrysmith.com. Be sure to have your say as the government normally increases the NMW and NLW in line with the LPC’s recommendations.