Low Pay Commission consultation 2022

The Low Pay Commission (LPC) is the independent body which advises the Government on the levels of the National Living Wage (NLW) and National Minimum Wage (NMW). To help shape the recommendations we will make this autumn on the 2023 minimum wage rates, we are seeking evidence on the impact of the NLW and NMW. All interested parties are invited to submit evidence to our consultation.

From 1 April 2022, the NLW will increase from £8.91 to £9.50. Our recommendations on the NLW will be guided by the Government’s target for the rate to reach two-thirds of median earnings by 2024, taking economic conditions into account.

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) our recommendations will be based on our usual approach of raising the rate as high as possible without damaging employment.

Read the Government’s remit to the LPC for 2021

What 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, in light of the Covid-19 pandemic and the support measures the Government has implemented in response to it.

This year we are particularly interested in:

• The affordability and effects of an increase in April 2023 to an NLW rate of £10.32 (within a range of £10.14-£10.50). This is our current central projection for next April’s rate. However, the combination of uncertainty and compositional effects make establishing the level of the on-course rate more difficult to predict than in previous years.
• Views on the NLW pathway to 2024. Based on forecasts, our current central projection for the April 2024 NLW rate is £10.95 (within a range of £10.58 - £11.33). The age threshold for the NLW is also due to come down to 21 by 2024 at the latest.
• 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.

Please see the consultation letter for details on the evidence we are seeking and a list of questions to consider.

We are holding online meetings with groups affected by the minimum wage throughout this consultation period. Please contact us 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

As part of our consultation, we meet people and organisations across the UK to hear first-hand evidence on these questions. We will be returning to in-person regional visits later in the year and will continue to hold meetings and discussions online alongside these. If you are interested in providing evidence please contact us via lpc@lowpay.gov.uk

Our policy is to quote consultation responses in our annual report and to list the names of respondents unless they request otherwise. If you do not wish your response to be made public, then please make that clear in your submission. Otherwise, we will assume that by responding to our consultation you have given consent to us publishing your name and content of your submission.