The government has recently updated the remit for the Low Pay Commission (LPC), introducing significant changes that will influence how minimum wage rates are recommended. Notably, the LPC is now required to consider the cost of living when making its recommendations for minimum wage rates.
Additionally, the LPC has been tasked with narrowing the gap between the minimum wage rate for 18-20-year-olds and the National Living Wage. The government's long-term objective is to eliminate age bands altogether, establishing a single adult rate across the board.
The LPC continues to follow its established process of making recommendations each October for the minimum wage rates that will apply from the following April. This timeline remains in place, providing businesses with the necessary time to plan for any increases.
In addition to considering the cost of living, the LPC's remit will still include an assessment of the impact on business competitiveness, the labour market, and the broader economy.
For further details, please visit the UK Government's website.