national living wage

Understanding employers’ use of the National Minimum Wage youth rates

Right from their inception the minimum wage rates have included age-related bands intended to give young people protection in the labour market. Initially there were only two age bands, 18-21 and 22+. With the introduction of the National Living Wage in 2016 there are now four age bands and an Apprentice Rate. While increases in youth rates had previously been more modest in the context of economic recession, evidence of an improving youth labour market has resulted in more ambitious upratings over recent years.

National Minimum Wage and National Living Wage Impact Assessment - Counterfactual research

Executive summary

Aims and objectives of counterfactual wage research

Over the summer, the National Institute of Economic and Social Research (NIESR) conducted an independent review of the methodology used by the Department for Business, Energy and Industrial Strategy (BEIS) for estimating the cost to business of upratings to the National Minimum Wage (NMW) and National Living Wage (NLW) rates, focusing on the counterfactual underpinning the costs estimate.