Ryan FowlerA new report by the Low Pay Commission (LPC) has revealed that while overall minimum wage coverage rose significantly between 2023 and 2024, an estimated 371,000 workers were underpaid in April 2024.
Baroness Philippa Stroud, Chair of the LPC, said: “Too often the low-paid workers we speak with feel powerless and cut adrift from the institutions which exist to protect them. This can cause low-paid workers to put up with poor employment conditions and underpayment for fear of repercussions.”
Baroness Stroud welcomed the inclusion of several LPC recommendations in the Employment Rights Bill, adding that the creation of the Fair Work Agency represents a significant opportunity to reform the enforcement of labour rights.
The LPC’s report provides an in-depth analysis of underpayment, highlighting that one in three underpaid workers remain in the same situation for over a year. It also assesses the effectiveness of current enforcement measures, identifying gaps in the system and persistent non-compliance by employers.
The Commission has urged the Government to improve enforcement by ensuring that workers and employers have access to accurate information and by strengthening data collection on the nature of non-compliance.
New minimum wage rates from April 2025
The report also confirmed the new National Minimum Wage rates that will come into effect in April 2025:
- £12.21 for workers aged 21 and over
- £10.00 for 18–20-year-olds
- £7.55 for 16–17-year-olds
- £7.55 for apprentices
The LPC’s recommendations aim to reduce underpayment and improve conditions for low-paid workers, while ensuring that minimum wage increases translate into real benefits across the workforce.
