The Government asked the Low Pay Commission to make recommendations for the National Minimum Wage rates such that they are set as high as possible without causing unemployment effects.

In respect of the National Living Wage (NLW), the Government asked the Commission to recommend the rate such that the NLW reaches 60% of median earnings by 2020, assuming sustained economic growth.

The Low Pay Commission recommended that: 

  • The National Living Wage (for workers aged 25 and over) should increase from £7.50 to £7.83The rate for 21-24 year olds should increase from £7.05 to £7.38
  • The rate for 18-20 year olds should increase from £5.60 to £5.90
  • The rate for 16-17 year olds should increase from £4.05 to £4.20
  • The apprentice rate (for apprentices aged under 19 or in the first year of their apprenticeship) should increase from £3.50 to £3.70.
  • The Low Pay Commission has recommended that the accommodation offset increases from £6.40 to £7.00 from 1 April 2018.

The government agreed with all the proposed increases and it was announced in the 2017 Autumn Budget that they will take effect from 1 April 2018. They have said that they will respond to the Low Pay Commission’s Enforcement Report from summer 2017, and will be issuing the Low Pay Commission’s remit for 2018, in due course.


National living Wage rates/National minimum wage rates 



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