Low Pay Commission’s Recommendations on Increases to the National Minimum Wage

February 25, 2015

Low Pay Commission’s Recommendations on Increases to the National Minimum Wage

The Low Pay Commission (LPC) has published its 2015 report in which it makes recommendations to the Government on National Minimum Wage (NMW) rates.

The recommendation as regards the hourly rate for adults, which applies to workers aged 21 and over, is that it should rise by 3 per cent from £6.50 to £6.70 per hour from 1 October 2015.

The LPC has also recommended:

  • an increase of 3.3 per cent from £5.13 to £5.30 in the youth development rate, which applies to 18 to 20-year-old workers;
  • an increase of 2.2 per cent from £3.79 to £3.87 in the NMW rate for 16- and 17-year-olds; and
  • an increase of 2.6 per cent from £2.73 to £2.80 in the apprentice rate of the NMW, which applies to apprentices under 19 or over 19 and in the first year of their apprenticeship.

The recommended increase in the accommodation offset, which is the maximum daily sum employers who provide accommodation can deduct towards those costs, is 27 pence, taking it from £5.08 to £5.35 per day from 1 October 2015.