12 July 2024

FEDERATION URGES CAUTION ON MINIMUM WAGE INCREASES

The Federation has today published its response to the Low Pay Commission’s (LPC) 2024 consultation, urging Commissioners to exercise caution when recommending the National Living Wage (NLW) rates for 2025. 

Our response was informed by feedback from members which suggests that maintaining pay differentials for different skills levels can be challenging when new mandatory wage rates are imposed. Our latest Printing Outlook research found that ‘wage pressures’ are now cited by the printing industry as its primary cost concern, well above energy costs and substrate costs. 

The LPC is the independent body which advises the Government on mandatory wage increases. The recent consultation sought views on what its recommended rates for April 2025 should be, calling for views on a suggested range of between £11.61 and £12.18, with a central estimate of £11.89.  

In response to the suggested rates, the Federation has called on both Commissioners and the Government to ensure that April 2025 rate increases are manageable for businesses. With NLW rates rising sharply in recent years (by 9.7% in 2023 and 9.8% in 2024) the current NLW rate now stands at £11.44 per hour.  The Federation has urged Commissioners to recommend a rate no higher than the central estimate of £11.98, which represents a 3.4% increase. The NLW is already equivalent to two thirds of median income in the UK, a target set by the Government in 2020.  

The Commission will now write to the Government making its recommendation for 2025, with the Government having the final say. The Federation has also supplied a briefing to the Department for Business & Trade about the impact on the industry of the recent significant increases, including direct feedback from our member businesses.