Thank you for contacting me about the National Minimum Wage (NMW).
I am glad that ministers have committed to protecting low paid workers through the NMW and the National Living Wage (NLW). The Government has made it clear that it continues to ensure the lowest paid in our society are fairly rewarded for their contribution to the economy. The introduction of the NLW has delivered the fastest pay rise for the lowest earners in 20 years.
The Government accepted all of the Low Pay Commission’s recommendations for new rates, which came into force in April.
The Low Pay Commission recommended:
· A 59p (6.6 per cent) increase in the NLW, from £8.91 to £9.50;
· A 82p (9.8 per cent) increase in the 21-22 National Minimum Wage, from £8.36 to £9.18;
· A 27p (4.1 per cent) increase in the 18-20 National Minimum Wage, from £6.56 to £6.83;
· A 19p (4.1 per cent) increase in the under 18 National Minimum Wage, from £4.62 to £4.81;
· A 51p (11.9 per cent) increase in the Apprentice National Minimum Wage, from £4.30 to £4.81; and
· A 34p (4.1 per cent) increase in the Accommodation Offset, from £8.36 to £8.70.
Further, the Low Pay Commission concluded that their recommended NLW rate would keep Government on track to reach the target of two-thirds of median earnings by 2024. Those on the NLW should see their pay rise faster than inflation and average earnings, protecting workers’ living standards.
Existing legislation in this area is very clear: all individuals deemed ‘workers’ under employment law are entitled to the appropriate minimum wage rate. Likewise, it is already clear that travel time and waiting time for the purposes of the job (not including commuting from home) must be counted as ‘hours worked’.
The Department for Business and Trade is working with partners to encourage eligible workers to visit the Check Your Pay site where they can check their pay and find out what they can do if they believe they are underpaid. The campaign aims to reach workers through social media, digital and other channels.
I am aware that the Low Pay Commission is currently undertaking a consultation on the effects of the National Living Wage and National Minimum Wage to inform their recommendations on the 2023 rates. The consultation has now closed and the Government is reviewing the feedback.
Thank you again for taking the time to contact me.