The Low Pay Commission is the independent body that advises the Government on the level of minimum wage. They have been asked by the Government to recommend in October of this year the National Minimum Wage and the National Living Wage rates which will apply from April 2022. It really is as simple as that.
The National Minimum Wage in the UK is dependent upon your age and whether or not you are an apprentice. It is set annually by the Government, based on recommendations given by the Low Pay Commission. It is applicable to every person over school leaving age, regardless of their position in the company. However, there are a few exceptions where the National Minimum Wage does not apply. For instance, if you are self-employed and running your own business or you are volunteering.
The National Living Wage on the other hand was introduced in the Summer Budget of 2015 by the then Chancellor George Osborne and became law on the 1st of April 2016. Very confusingly the National Living Wage was simply a renaming of the National Minimum Wage and is not truly linked to the cost of living. In other words, the National Living Wage is higher than the National Minimum Wage, but you must be over 23 years old to receive it. To learn more please watch the short video.