Listen to this article here
|
The Low Pay Commission (LPC) has advised the government to take steps towards uplifting minimum pay for those aged 18-20 to bring it in line with the National Living Wage.
In its report published on 27th March, the LPC has recommended considering the case for reducing the NLW age of eligibility, reducing the gap between adult and youth rates and reforming the treatment of apprentices.
The report comes as the National Living Wage (NLW) is set to reach the long-standing target of two-thirds of median hourly earnings, for workers aged 21 and over. Since 2016, the LPC has set the NLW with reference to a target. In this period, the NLW has risen far quicker than before the target was introduced, and will rise to £11.44 from 1st April 2024. In this context, the Government asked the LPC to help inform its next steps for National Minimum Wage (NMW) policy.
Baroness Philippa Stroud, Chair of the Low Pay Commission, said:
“Achieving the two-thirds target is a significant milestone.
“The target has boosted the incomes of low-paid workers in especially turbulent times. And whilst it has posed real challenges for employers, in already difficult circumstances, but the evidence suggests the increases to date have been implemented steadily and carefully so as not to damage employment opportunities.
“Our report reflects on the scale of this change and considers the way forward. There are various possible models for setting the minimum wage. In choosing the National Minimum Wage’s future direction, we stress the importance of clarity over the aims of the policy; and preserving the consensus-based social partnership model which ensures both worker and employer voices are heard.
“There are real opportunities in the next phase of minimum wage policy, to make advances for workers young and old. Whatever decisions are made will always need to be backed by careful attention to the economic context and a keen sense of the risks faced by employers. The Low Pay Commission’s model remains the best one for delivering these changes.“