Press release

Government sets out Low Pay Commission remit

This was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

The government has written to the Low Pay Commission (LPC) today setting out its remit for its 2014 Report.

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The LPC will continue to monitor, evaluate and review the different National Minimum Wage rates (NMW) and their impact, and make recommendations on the levels it believes should apply from October 2014.

As part of its remit the government has asked the independent body to review the contribution the NMW could make to the employment prospects of young people.

In making recommendations in these areas, government is asking the Low Pay Commission to again take account of the state of the economy, and employment and unemployment levels.

Employment Relations Minister Jo Swinson, said:

The government is committed to the National Minimum Wage (NMW) because of the protection it provides to low paid workers and the incentives to work it provides. Our aim is to have NMW rates that help as many low-paid workers as possible, while making sure that we do not damage their employment prospects.

With this in mind, we have asked the LPC this year to review the impact of the NMW, consult with all interested parties, and to make recommendations for the government to consider next year.

The LPC will report to the Prime Minister, the Deputy Prime Minister and the Secretary of State for Business, Innovation and Skills by the end of February 2014.

Notes for editors:

  1. The Low Pay Commission was established following the National Minimum Wage Act 1998 to advise the government about the National Minimum Wage. Commissioners have backgrounds in business, trades unions and academic labour relations. For more details, and copies of the full 2013 Report, see www.lowpay.gov.uk
  2. A written ministerial statement has been made today, publishing the remit for the LPC’s 2014 report. Full details of the remit will shortly be available at www.parliament.uk
  3. When the minimum wage was launched in 1999, the main rate was £3.60. It is now set at £6.19 per hour. On the 15th April the government announced the following rates will come into effect on 1 October 2013:
    • The adult rate will increase by 12p to £6.31 an hour
    • The rate for 18-20 year olds will increase by 5p to £5.03 an hour
    • The rate for 16-17 year olds will increase by 4p to £3.72 an hour
    • The apprentice rate will increase by 3p to £2.68 an hour.
    • The accommodation offset increases from the current £4.82 to £4.91
  4. The Pay and Work Rights helpline number is 0800 917 2368. As well as receiving and investigating complaints about non-payment of the minimum wage, the helpline offers advice and information.
  5. The government’s economic policy objective is to achieve ‘strong, sustainable and balanced growth that is more evenly shared across the country and between industries’. It set four ambitions in the ‘Plan for Growth’, published at Budget 2011:
    • to create the most competitive tax system in the G20
    • to make the UK the best place in Europe to start, finance and grow a business
    • to encourage investment and exports as a route to a more balanced economy
    • to create a more educated workforce that is the most flexible in Europe.

Work is underway across government to achieve these ambitions, including progress on more than 250 measures as part of the Growth Review. Developing an Industrial Strategy gives new impetus to this work by providing businesses, investors and the public with more clarity about the long-term direction in which the government wants the economy to travel.

Published 27 June 2013