Low Pay Commission
The Low Pay Commission (LPC) has launched an invitation to tender for research projects to inform recommendations on the National Minimum Wage (NMW) rates, including the National Living Wage (NLW), for next year and beyond.
Each year the LPC assesses the impact of increases in the NMW, including the NLW. We continuously monitor their impact on the sectors and groups of workers most affected, and on the labour market more generally. We wish to commission a number of new research projects to inform this work.
The NLW has a target to reach two-thirds of median hourly earnings for those aged 21 and over by 2024. The increase to 10.42 on 1 April 2023 puts us on-course to meet that target next year, and we intend to extend the age of eligibility to include 21 and 22 year olds. We are particularly interested in research that will help inform discussions of minimum wage policy beyond 2024.
The Invitations to Tender are on Contracts Finder (please find the links below). They all have a deadline of Tuesday 2 May 2023 at 14:00.
This call is for funding up to 30,000 + VAT and is for one project only. The projects will be completed by the autumn of 2023 at the latest.
This call is for funding up to 30,000 + VAT and is for one project only. The project will be completed by the autumn of 2023 at the latest.
This call will fund up to three research projects for a budget of up to 90,000 + VAT in total not each. The projects will be completed by the autumn of 2023 at the latest.
This call is for funding up to 60,000 + VAT and is for one project only but is extended with the final report not expected until summer/autumn 2024 at the latest.
In the open call, we have identified a number of areas of research that might be particularly interesting, but the purpose of the open call is to invite ideas for new research areas, methods or data sources that give new insight into the impact of the NMW, including the NLW. These insights will help in form our recommendations in our autumn 2023 Report and beyond. The identified areas include:
- Differentials and pay progression.
- Exploring the impact of the recent change in aligning the Apprentice Rate to the 16-17 Year Old Rate.
- The nature, extent and experiences of one-sided flexibility among workers.
- Exploring the earnings outcomes for different types of apprenticeships several years after completion, particularly those that make use of the apprentice minimum wage during the apprenticeship.
- Investigating the relationship between the NLW and the gig economy?
- Further research of the impact of the NMW/NLW by protected characteristics to cover the most recent upratings.
- Exploration of spatial differences in the impact of the NMW/NLW.
- In light of the recent period of high inflation, an investigation into whether the impact of the NMW/NLW differs in periods of high inflation.
- How has the minimum wage affected transitions for low-paid workers into other low-paid jobs, higher-paid jobs, self-employment, unemployment and inactivity.
- How has the NMW/NLW affected the allocation of workers between firms?
- Comparisons of the impacts of large and small increases in the minimum wage
- As we look towards post-2024, it is appropriate to reconsider the newly established relativities between the various minimum wage rates and what will be the large step at age 21.
- An investigation of any evidence that the changes in the NLW have led.
Information about previous LPC research projects is available on our website.
Please direct all enquiries through UKSBS Research and Contracts Finder. Details of how to apply are given in the links provided for the individual calls. However, please let us know if the timescales and funding create any issues, particularly if you were seeking to undertake