Changes to the National Minimum Wage rates
Objectives of the consultation
There are currently four National Minimum Wage rates, which change annually for all workers on an October cycle: the adult rate (for those aged 21 and over), the 16-17 Year Old Rate, the Youth Development Rate (for those aged 18-20) and the Apprentice Rate. The main, adult rate, will be £6.70 from October 2015.
The Government is introducing the National Living Wage, a mandatory new rate for all workers aged 25 and above comprised of the adult rate and an initial 50 pence Living Wage Premium. The National Living Wage will apply from April 2016, at a rate of £7.20 an hour. Once introduced this will become the rate for workers aged 25 and over. Only 21-24 year olds will be paid at the adult rate of the National Minimum Wage.
The Government has set out an ambition that the National Living Wage should continue to increase each April to reach 60 per cent of median earnings by 2020, with an objective to have a National Living Wage of over £9 an hour by 2020.
In this consultation the Low Pay Commission (LPC) was seeking views on the proposed changes to the National Minimum Wage rates and initial evidence on the potential impact of the new National Living Wage. The consultation closed on 25 September 2015. The LPC will consult further next spring on the future rate of the National Living Wage.
To download the consultation document, please follow the link below.
CIBSE did not submit a response to this consultation.