The government wrote to the Chair of the Low Pay Commission (LPC) on 30 July to update the remit of the LPC.
It has asked the LPC to recommend an increased national living wage (NLW) rate to apply from April 2025 which, for the first time, should take into account the cost of living, including the expected annual trends in inflation between now and March 2026. The government has also asked the LPC to recommend a NMW rate for 18 to 20-year olds to apply from April 2025 to narrow the gap with the NLW. This will be a step towards achieving the government's ultimate aim of having a single adult rate and its pledge to make the minimum wage a real living wage taking into account the cost of living. It recognises that incremental annual steps will need to be taken to achieve this, taking into account the effects on employment of younger workers, incentives for them to remain in education or training, and the wider economy. The LPC has been asked to provide a final report to the Prime Minister and the Secretary of State for Business and Trade by the end of October 2024.
