Launched by the Low Pay Commission, the consultation seeks your views on the effects of planned rises to the National Minimum Wage (NMW) and National Living Wage (NLW) in 2021.
The NLW will rise 6% to £8.72 from April. Currently it is only for those aged 25 and over, but the Government plans to lower the age threshold to 23 in 2021 and 21 by 2024.
Childcare is one of the four least well-paid sectors in the UK economy, along with hair and beauty, cleaning, and hospitality. A Nursery World investigation last year into working poverty found that one in ten childcare practitioners have a household income which meets the definition of relative poverty, and that half earned 17k or less.
Our findings will be used as a formal submission to the consultation, the LPC said.
There has been widespread concern about the impact of the upcoming rate rise on childcare providers already struggling with current funding rates and rising costs. Paintpots owner David Wright said ‘So many providers are currently saying they have no idea how they will survive once the minimum wage increase comes into effect.’
The LPC wants to know particularly about the affordability and effects of an increase in April 2021 to an NLW rate of £9.21. The consultation letter says, ‘This is our current central projection for next April’s rate, with a likely range of 6 pence above or below this figure.’
It also wants to hear views on lowering the NLW age threshold to 21, and potential changes to the apprentice rate.
On plans for the NMW, currently for those under 25, the LPC is 'seeking evidence to make recommendations on the basis of raising the pay of as many low-paid workers as possible without damaging their employment prospects.'
