The Low Pay Commission (LPC) has published a report on the future of the National Minimum Wage beyond 2024.
In recent years, the LPC has been setting the National Living Wage based on a target of two-thirds of median hourly earnings. The National Living Wage is now set to reach this target, and so the LPC is now reporting to the government with advice on what its next steps on National Minimum Wage could be.
One of their recommendations is to reduce the difference between the youth and adult rates. From April 2024, the minimum age for National Living Wage was brought down from 23 to 21. The LPC are suggesting that this should be further reduced so that the adult rate will apply to anyone over 18 years old.
The LPC also feel that the Apprentice Rate could be removed. However, they acknowledge the risks this would bring if this were done at the same time as reducing the gap between youth and adult rates for non-apprentices.
Therefore, they are suggesting that the Apprentice Rate is kept, but for those aged over 18, it changes to a discount of the age rate during the apprentice’s first year. This will still mean that the cost of training is acknowledged in the pay rate but allows for an increase in wages.
To see more about the LPC’s proposals, please see:
https://assets.publishing.service.gov.uk/media/6603e9009741c5001139dc1a/The\_National\_Minimum\_Wage\_Beyond\_2024.pdf
If your business ever runs into financial difficulties, how you handle the situation can have serious and lasting consequences. That’s the message behind a recent case involving a Staffordshire director who’s just been banned from running a company until 2031.
The government has launched its Small Business Plan which it believes will help small businesses to grow and encourage entrepreneurs to start businesses.