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Low Pay Commission starts work on recommendation for 2025 minimum wage | Consensus HR in Herts, Beds

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The Low Pay Commission (LPC), the independent body which advises the Government on the levels of the National Minimum Wage (NMW), including the National Living Wage (NLW), has launched a call for evidence to inform its advice to the Government on the minimum wage in 2025 and beyond.

With full details available on the GOV.UK website, it is seeking input to shape the recommendations which it will make to the Government this autumn, on minimum wage rates to apply from April next year.

The deadline for submitting evidence is 7 June 2024.

The Department for Business and Trade (DBT) has published a new remit for the LPC which can be found here.

This asks the Commission to recommend an NLW rate for April 2025 “to maintain the bite at two-thirds of median earnings and protect progress made to end low hourly pay for this group, without recommending any further revisions to the age threshold”.

The LPC estimates that the rate required to meet this aim is within the range of £11.61 and £12.18, with a central estimate of £11.89.

The Government also asks the LPC to monitor and evaluate the levels of each of the different NMW rates (under-18 and 18–20 age groups and apprentice rate) and make recommendations on the increases it believes should apply from April 2025, such that the rates are set as high as possible without damaging the employment prospects of each group.

The TUC has criticised the Government for its decision to “tie the hands” of the LPC.

General Secretary, Paul Nowak, said: “Keeping the minimum wage at two-thirds of median earnings will deliver a paltry increase of just 15 pence next year — based on the latest forecasts. Ministers should be instructing the LPC to aim for 75% of median pay. This would help deliver a £15 an hour minimum wage and make work pay for millions.”

Low Pay Commission starts work on recommendation for 2025 minimum wage | Consensus HR in Herts, Beds
Low Pay Commission starts work on recommendation for 2025 minimum wage | Consensus HR in Herts, Beds

Our HR comment:

Our HR Comment / Advice – Low Pay Commission starts work on recommendation for 2025 minimum wage | Consensus HR in Herts, Beds

Matthew Chilcott, FCIPD, ACEL, Owner of Consensus HR comments: “With the most recent pay rate increases happening at the beginning of this month with on average £1 per hour extra, it is interesting to see that that the low pay commission are starting to work on the rates for 2025.  This article from HR inform gives some useful links to Government websites where further information can be found.  We have written a number of previous blogs on minimum wage which can be found by clicking on the relevant title below:

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More than 500 businesses fail to pay minimum wage | Consensus HR – Herts, Beds

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More than 500 businesses fail to pay minimum wage | Consensus HR

More than 500 businesses, including Greggs and Harrods, failed to pay some of their employees the minimum wage, according to a list released by the Department for Business and Trade. The analysis, which covers breaches between 2015 and 2023, shows that recruitment agency Staffline topped the list for failing to pay 36,767 workers correctly, while Estée Lauder failed to pay £894,980 to almost 6,000 workers. The report shows that 524 employers have repaid more than 172,000 workers almost £16m, plus an additional penalty, for breaches in paying the statutory national minimum wage. Kevin Hollinrake, the minister for enterprise, markets and small businesses, said: “Employees deserve to get paid properly for the hard work they put in.” Caroline Harwood, an employer tax partner at BDO, said: “It’s always a bit of a shock to see so many well-known names appearing on HMRC’s list of employers who have been found to be in breach of national minimum wage rules.”

The Times

Our HR comment: – More than 500 businesses fail to pay minimum wage | Consensus HR – Herts, Beds

Matthew Chilcott, FCIPD, ACEL, Owner of Consensus HR comments: “This never ceases to amaze me, the amount of companies that fail to pay the minimum wage considering our wages are one of the main things we all work for.  However, it can also be easier said than done and hence why, the importance of ensuring yearly salary reviews take place, to give businesses the opportunity to make sure all members of the team are paid adequately.

 

More than 500 businesses fail to pay minimum wage | Consensus HR

Generally wage increases happen in April each year and is publicised extensively by the Government so as to ensure that all businesses have the information to make any changes needed.  The Government has announced the rates of the National Living Wage (NLW) and National Minimum Wage (NMW) which will come into force from April 2024. In doing so, it has accepted in full the recommendations of the Low Pay Commission.

The rates which will apply from 1 April 2024 are as follows:

 

NMW Rate

Increase in pence

Percentage increase

National Living Wage (21 and over)

£   11.44

£     1.02

9.8%

18-20 Year Old Rate

£     8.60

£     1.11

14.8%

16-17 Year Old Rate

£     6.40

£     1.12

21.2%

Apprentice Rate

£     6.40

£     1.12

21.2%

Accommodation Offset

£     9.99

£     0.89

9.8%

Gov.Uk

More than 500 businesses fail to pay minimum wage | Consensus HR

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Increase in minimum salary needed – skilled worker visas | Consensus HR – Herts, Beds

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Government to increase minimum salary needed to get skilled worker visas | Consensus HR – Herts, Beds

Responding to the recent figures showing increases in annual immigration, quite apart from those entering the UK in “small boats”, Home Secretary, James Cleverly, has told Parliament that the Government intends to increase the minimum salary needed to get a skilled worker visa.

It will go up, next spring, from £26,200 to £38,700.

Mr Cleverly said his aim was to stop immigration undercutting the salary of British workers. However, he went on, those coming on health and social care visa routes will be exempt “so we can continue to bring in the healthcare workers on which our care sector and NHS rely”.

“We will scrap cut-price shortage labour from overseas by ending the 20% going-rate salary discount for shortage occupations and reforming the shortage occupation list (SOL),” the Home Secretary told MPs.

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He said that the Government intends to create a new immigration salary list with a reduced number of occupations in co-ordination with the Migration Advisory Committee (MAC). The MAC is being asked to review the occupations on the SOL because of the new higher-skilled worker salary thresholds.

Among other changes to the rules, Mr Cleverly said that the Government intends to ensure that people only bring dependants who they can support financially by raising the minimum income for family visas to the same threshold as the minimum salary threshold for skilled workers.

From January 2024, he continued, the right for international students to bring dependants will be removed unless they are on postgraduate courses designated as a research programme. In addition, care firms in England must be regulated by the Care Quality Commission (CQC) in order for them to sponsor visas.

Taken together, this package will mean that around 300,000 people who came to the UK last year would now not be able to do so.

Chief Executive Officer of Care England, Professor Martin Green, said: “If the Government now wants to move away from international recruitment as the solution to fixing the social care workforce crisis, it must act swiftly and invest in improving the pay and conditions to drive domestic recruitment.”

HR Inform – 7-Dec-23

Our HR Comment: Government to increase minimum salary needed to get skilled worker visas | Consensus HR – Herts, Beds

Matthew P Chilcott, FCIPD, ACEL, Owner of Consensus HR comments: – “This is a very interesting article, and we wait to see the outcome on the Jobs Market.  At Consensus HR, we always ensure that our clients are paying what is expected within the workplace and to the law with the changing pay rates whilst looking at the company’s recruitment strategy to attract and retain the best talent for the business and employee’s success.”

Government to increase minimum salary needed to get skilled worker visas | Consensus HR – Herts, Beds

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Government to increase minimum salary needed to get skilled worker visas | Consensus HR – Herts, Beds

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