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PIPs and Living Wage Consultations: Have you had your say?

  • Writer: Eleanor Rogers
    Eleanor Rogers
  • Jun 25
  • 2 min read

The consultation periods for two key areas of change affecting employers will close on 30 June 2025.  Have you had your say yet?

 

The Government published a Green Paper on Pathways to Work, in March 2025, the aim of which is to “…fix the broken incapacity and disability benefits system. It is driving up economic inactivity and driving down opportunity. It is failing people and the country by producing poor employment outcomes, low living standards and high costs to the public purse.”  The Paper notes that in order to successfully reform health and disability benefits, workplaces need to accommodate the needs of disabled people – currently only 23% of employers reported that they provide workplace adjustments to support disabled staff and staff with long-term health conditions, and the current Access to Work scheme only supports 1% of working disabled people. The role of employers will be key.  The Paper recognises that a cultural shift will be required, to ensure that accessibility and workplace adjustments are fully embedded into recruitment and retention practices. 

 

The Department for Work and Pensions is now consulting on “Reforming the structure of the health and disability benefits system”, in the wake of the proposed reduction of those being eligible for the Personal Independence Payment. 

 

 

Living Wage

 

On 6 April 2025, the National Living Wage (NLW) was increased to £12.21 per hour, for those aged 21 and over.  This followed the removal of the 21-22 age bracket in 2024 (which meant that more workers fell into the NLW (rather than the lower National Minimum Wage rate).  The increase to the NLW coincided with the hikes in employers NICs in April 2025. See here for a note of the current rates: What's on the horizon in 2025?

 

The Low Pay Commission is consulting over:

 

  1. the impact of recent increases – they are seeking evidence on the “broad economic and labour market conditions” that workers and businesses are facing and the impact of the rate increases;

  2. the affordability of a suggested future increases to the NLW – the new NLW rate could increase to between £12.50 and £12.80 in April 2026; and

  3. the effect of recent minimum wage increases for younger workers on their employment prospects;

  4. different approaches to lowering the NLW age threshold further – the Government intends to extend NLW to those aged 18 and up (the current National Minimum Wage rate for 18-20 year olds is £10 per hour).

 

The Low Pay Commission has not yet received its remit from the Government, but seeks to “allow all stakeholders a substantial length of time to contribute”.  The Consultation letter is shown here: Low Pay Commission consultation letter - GOV.UK.  To take part in the consultation see here: Low Pay Commission consultation 2025 


Eleanor Rogers is a Senior Associate at Constantine Law.

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