Regulatory Policy Committee
This is the RPCs opinion on DBTs final stage impact assessment for The National Minimum Wage (Amendment) (No. 2) Regulations 2024.
The national minimum wage (NMW) was introduced in April 1999. The national living wage (NLW) was introduced in April 2016.
This opinion covers the impact assessment for The National Minimum Wage (Amendment) (No. 2) Regulations 2024, laid in draft before Parliament on 31 January. The proposals set minimum hourly wage levels, protecting low-paid workers while providing incentives to work. The Low Pay Commission reviews these rates, and makes recommendations to government, annually.
The proposals would increase the NLW (from April 2024 applying to those aged 21 years and older) and the NMW rates for development (18-20 years), youth (16-17 years) and apprentices. All proposed increases are in line with the LPCs recommendations. The proposals meet the Governments target for the NLW to reach two-thirds of median earnings (providing economic conditions allow) and for the NLW to apply to workers aged 21 years and over by 2024.