The new Labour government has given the Low Pay Commission (LPC) wider discretion to review and adjust the levels of the National Minimum Wage (NMW). So what does this mean for the future?
A wider remit
The LPC is an independent public body that advises the Government each year on the NMW. As a result of a change in government policy, when deciding on potential increases to the NMW, the LPC will now have greater flexibility to factor into its assessment the cost of living, as well as inflation trends. Given the times through which we have lived of late, this could impact on the likely future level of increases made to the NMW each April.
Interestingly, the Government has also specified:
An immediate impact?
Since the change in the LPC’s remit, its recommendations for NMW rates for the financial year 2025/2026 have been published and indeed accepted by the government. This means that with effect from 1 April 2025, NMW rates will increase quite significantly, as follows:
If you want to discuss the impact of these changes on your business, please get in touch.
James qualified as a solicitor in 2001, having completed his academic studies at the University of Sheffield. Throughout his career, he has worked for a number of prestigious regional law firms, joining stevensdrake as Head of Employment Law in 2012.
As well as pursuing and defending the full range of Employment Tribunal claims, James spends a considerable amount of his time providing advice and support to businesses of various sizes. He advises on a wide variety of HR and employment law issues, including employment contracts, HR processes and procedures, grievances, disciplinary issues, absenteeism, performance management and settlement agreements. He also regularly helps clients with redundancy exercises and internal reorganisations.
James has previously been described as an ‘Associate to Watch’ by Chambers UK, an independent guide to the legal profession. His clients regard him as “thorough”, “easy to work with” and someone who avoids blinding them with legal jargon.
Outside of work, James balances family life with ambitions of swimming, running and cycling a bit faster.
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