The LPC will continue to monitor, evaluate and review the National Minimum Wage (NMW) and its impact, and review the levels of each of the different minimum wage rates.
As part of its remit the Government has asked the independent body to pay particular attention to:
- Youth employment - including those in apprenticeships and internships
- Possibilities for simplification of the current regulations
- The best way to give businesses greater clarity on future levels of the NMW.
The LPC will report to the Prime Minister and the Secretary of State for Business, Innovation and Skills by the end of February 2012.
Employment Relations Minister Edward Davey said:
“The Government is committed to the National Minimum Wage as it provides the much needed protection for low paid workers and encourages those out of work, back into the labour market. We have asked the independent LPC to monitor the impact of the NMW, consult with employers and employees, and to make recommendations for the Government to consider next year.”
Notes for editors:
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 2011 Report, see http://www.lowpay.gov.uk/
In the 2012 LPC remit, the Government is asking the LPC to monitor, evaluate and review the NMW rates and make recommendations, plus consider three issues of particular relevance this year:
- Continue giving particular consideration to young workers, including those in apprenticeships and internships, to reflect on-going concerns about the position of young people in the labour market
- Consult and make recommendations on whether the NMW regulations can be made even simpler and easier to administer. As part of this simplification agenda, the Government has proposed the abolition of the Agricultural Wages Board (AWB). The LPC is invited to consider the implications of this potential change
- Consider the best way to give business greater clarity on future levels of the NMW, alongside considering if any recommendations could be introduced more promptly.
3.When the minimum wage was launched in 1999, the main rate was £3.60. It is now set at £5.93 per hour. On the 7 April 2011 the Government announced the new NMW rates that will come into force on 1 October 2011.
- The adult rate will increase by 15p to £6.08 an hour
- The rate for 18-20 year olds will increase by 6p to £4.98 an hour
- The rate for 16-17 year olds will increase by 4p to £3.68 an hour
- The rate for apprentices will increase by 10p to £2.60 an hour.
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 in more than 100 languages.
BIS’s online newsroom contains the latest press notices, speeches, as well as video and images for download. It also features an up to date list of BIS press office contacts. See http://www.bis.gov.uk/newsroom for more information.
Notes to Editors
BIS Press Office
Department for Business, Innovation and Skills
020 7215 5947