Announcements about new minimum wage rates won’t be made until at least mid-December or even into the new year following the general election, reports the Association of Labour Providers (ALP).
The Low Pay Commission (LPC) would normally present recommendations for increasing the National Minimum Wage by the end of October, with the Government confirming any changes in the Budget by mid-November.
The November budget has not gone ahead due to the general election and so it is assumed that the issue will be resolved by the next government, following ‘purdah’ rules.
Employers with a 1 January pay review date may have to set 2020 pay with no idea if their rates will be high enough come April.
The ALP have reported that it’s possible that the LPC will publish its report and recommendations anyway. This means employers will at least have the opportunity to base any increase in pay rates on the LPC’s recommendations
The government had published two reports by the Low Pay Commission (LPC), which contained advice on setting future rates and recommendations on a staged reduction in the age level for the National Living Wage.
The government had announced plans to lower the eligibility threshold for the National Living Wage to 23 from April 2021 and to 21 within the next five years.