The Low Pay Commission has opened a consultation seeking views on existing national minimum wage and national living wages rates and the rates that should apply from April 2019.

The facts

On 5 March 2018, the Low Pay Commission opened a consultation. It is seeking evidence on the effects of recent increases in the National Living Wage and National Minimum Wage to inform thinking about future increases in the rates.

Following a recommendation in the Taylor Review (see our alert here), the Low Pay Commission will be considering both the possibility of a higher minimum wage for those hours that are not ‘guaranteed', as with zero hours contract workers, as well as alternative means for tackling the issue of ‘one sided flexibility’, which results in some workers experiencing uncertain and unpredictable work schedules.

The Low Pay Commission is also conducting a review, and seeking views on, the minimum wage structure, encompassing a review of the youth rates, and a review of the apprentice rate, in light of significant policy changes to apprenticeship policy in England.

What does this mean for employers?

The consultation will close on 1 June 2018, and the Low Pay Commission will recommend new rates to the government in October 2018. The government usually increases the National Minimum Wage and the National Living Wage in line with the Commission’s recommendations.

More details on the consultation can be found here.