Last week, the government updated the remit for the Low Pay Commission (LPC), now requiring it to consider the cost of living when recommending minimum wage rates. Additionally, the LPC has been directed to reduce the gap between the minimum wage for 18-20-year-olds and the National Living Wage, with a long-term goal of eliminating age bands entirely and implementing a single adult rate.

Each October, the LPC provides recommendations to the government on minimum wage rates for the following April. The updated remit retains this schedule, giving businesses time to plan for any wage increases.

Along with the cost of living, the LPC’s remit will continue to assess the impact on businesses, competitiveness, the labor market, and the broader economy.

See: https://www.gov.uk/government/publications/national-minimum-wage-and-national-living-wage-updated-low-pay-commission-remit-2024