National minimum wage update

Following the King’s Speech and subsequent industry announcements, our inbox has been flooded with emails seeking clarification on the implications for our sector. We understand the uncertainty this has caused and appreciate your patience as we sought clarity.

We are pleased to confirm that we have now met with the Low Pay Commission to gain a clearer understanding of the government’s intentions and the potential impact on our industry.

Update:

The government’s recent remit to the Low Pay Commisson (LPC) PC stated that its ambition is to remove age bands for adults.

However, the remit does not foresee immediate changes to the National Minimum Wage (NMW) age structure. This is consistent with a report the LPC submitted to the Government in early 2024. The LPC’s advice endorses the ambition to extend the NLW to all adult workers, but stresses the importance of managing any transition carefully, with time allowed for full evaluation of each step.

LPC’s report recognizes that the risks associated with these changes are greater than when the National Minimum Wage (NMW) was adjusted for 21-22-year-olds, which is why they are recommend adopting a very careful approach.

What does this mean?

18-20 Year Olds:

For next year, the government has asked the Low Pay Commission to recommend a National Minimum Wage rate for 18-20-year-olds that will gradually reduce the gap between this age band and the adult NMW, taking steps year by year in order to achieve a single adult rate. This adjustment will be based on evidence and will allow the Low Pay Commission to conduct a full evaluation at each step. We anticipate that a rise will be announced in the October budget, to be implemented in April 2025.

Apprentices:

The government has also tasked the Low Pay Commission with recommending an Apprentice Rate to apply from April 2025. This rate will be set as high as possible without harming the employment prospects of apprentices.

Explanation:

We now have clarity that there is a very careful and considered plan to reduce the wage gap for 18-20-year-olds when evidence supports it, ensuring that employment prospects are not compromised.

The Hair & Barber Council will continue to work closely with the Low Pay Commission, advising and submitting evidence on behalf of our sector.

We will need your support and will keep you informed on how you can contribute to ensuring that the Low Pay Commission has the accurate information it needs moving forward, allowing them to give full consideration to all factors.

We hope this bulletin has helped clarify the facts. Please do not hesitate to reach out with any further questions or concerns.

Thank you to the Low Pay Commission for answering our urgent call and for providing this much-needed clarity.

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