The Low Pay Commission is an independent public body that advises the Government on the rates of the national minimum wage, including the national living wage. This report summarises the evidence underpinning the advice Low Pay Commission recommended to the Government. These recommendations were accepted in full and will come into effect from 1 April 2024.
You can read the full report here. LPC summary of evidence 2023 (publishing.service.gov.uk)
We are delighted that Youth Employment UK and our Youth Ambassadors were able to take part in this inquiry and that our recommendations were accepted.
Key findings
- Government remains committed to lowering the age threshold for the NLW to aged 21 and over by 2024.
- The recommendation of £11.44 is expected to reach the target of two-thirds of median earnings for those aged 21 and over by 2024. This rate will be the highest value in real terms that the NLW/NMW has ever reached.
- There have been significant increases to the minimum wage rates for apprentices, 16-17 year olds and 18-20 year olds.
- Despite falling vacancies, demand is resilient and shortages remain – overall, demand for labour is softening but remains above pre-pandemic levels, with many low-paying employers struggling to recruit.
- Workers seem willing to offer pay above the minimum wage to attract workers – workers are more likely to progress off the minimum wage into higher pay than pre-pandemic.
- Despite the NLW, low-paid workers continue to face challenges in the workplace, such as indirect costs of getting a new job, childcare, transport, unpredictable work hours…
Low Pay Commission’s Recommendations
|
NMW Rate |
Increase in pence |
Percentage increase |
National Living Wage (21 and over) |
£11.44 |
£1.02 |
9.8% |
18-20 Year Old Rate |
£8.60 |
£1.11 |
14.8% |
16-17 Year Old Rate |
£6.40 |
£1.12 |
21.2% |
Apprentice Rate |
£6.40 |
£1.12 |
21.2% |
Accommodation Offset |
£9.99 |
£0.89 |
9.8% |
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Email us at info@youthemployment.org.uk or call 01536 513388.
As experts on youth employment and co-founders of the Youth Employment Group, we are ideally placed to understand the complex landscape facing young people, employers and policy makers.