LPC launches 2025 NMW Consultation

Earlier this week, the Low Pay Commission (LPC) opened its 2025 consultation, and the BRC needs your input to inform our response. Please respond to our HR Benchmark – follow this link to do so.

There were also a number of recommendation and uptates from the LPC recently:

1) LPC’s future remit

The Government has now published LPC’s remit for 2024/25: 

The labour market is strong, with payroll employment at a record high and the unemployment rate is low by historical standards. However, we recognise that workers and employers have faced a challenging period of high inflation (which is now falling) and a weakened global economy. 

In this context, the government asks the Low Pay Commission to monitor and evaluate the National Living Wage. We ask the Low Pay Commission to recommend the National Living Wage rate which should apply from April 2025 in order 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.

[…] 

In making its recommendations for the minimum wage rates, the Low Pay Commission is asked to take into account the state of the economy, employment and unemployment levels and the wider labour market, business impacts, and relevant policy changes.

This is in alignment with BRC’s asks in our latest submission to the LPC, asking for the wider economic context to be taking into consideration, moving away from politically set targets.

• a short report marking the imminent increases in the NMW and NLW, and projecting the NLW rate for April 2025 (we project that a rate of £11.89 (with a range of £11.61-£12.18) would be sufficient in 2025 to stay at two-thirds of median hourly pay).
• LPC’s advice to the Government on the future of the National Minimum Wage (NMW). This report weighs up the progress of the minimum wage to date and sets out Commissioners’ views on the future of the rate.

The LPC is also undertaking visits across the UK to gather evidence towards its future recommendations.

Commissioners are keen to hear from retailers on the effects of the minimum wage and what are your recommendations ahead of the next increase. LPC is particularly looking to understand:

• How does the latest announcement affect your business planning? 
• How would you respond to the rising NMW? 

LPC is also interested in talking to companies that are trying to raise their productivity, to showcase their learning journeys in their communication platforms.  The oral evidence given by the companies will be collated along with the research statistics for LPC to make their yearly recommendations to the government about the minimum wage.

The next round of meetings will take place in Dover on 17 and 18 April, a full schedule and more information can be found here.

It is extremely important that you get involved by submitting a response to the BRC HR Benchmark, and taking place in the LPC’s visits. If you need any assistance on those, please don’t hesitate to drop me a line at luiza.gomes@brc.org.uk.