Low Pay Commission remit published
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14 June 2012 - BIS
The Government has written
to the Low Pay Commission (LPC) today setting out its remit for its
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
Review the regulations for salaried workers and consider whether they
can be simplified
Review the regulations that apply where employers provide
accommodation for their workers
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 2013.
Employment Relations Minister Norman Lamb, said:
The Government is committed to the National Minimum Wage as it
provides much needed protection for low paid workers and encourages
those out of work, to get back into the labour market. We have asked
the LPC this year to monitor the impact of the NMW, consult with all
interested parties, and to make recommendations for the Government to
consider next year.
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 2012 Report, see www.lowpay.gov.uk/
2. In the remit for the LPCs 2013 report, the Government is asking the
LPC to monitor, evaluate and review the NMW rates and make
recommendations, plus consider three issues of particular relevance
Youth rates - We have retained the specific
reference to young people this year, because of continuing concerns
about the youth labour market and the need to consider the impact of
the Raising of the (learning) Participation Age in England on the youth
and apprentice rates
Accommodation Offset - Accommodation is the only
benefit in kind that can count towards the NMW. Employers are allowed
to offset the cost of providing accommodation against the NMW, up to a
specified limit. The LPC last reviewed these rules in 2006 and we agree
with the LPC's view in its 2012 report that it is appropriate to review
the evidence base and the rationale for the provisions.
Salaried workers We are asking the LPC to
review the provisions for workers who are paid an annual salary in
monthly/weekly instalments. These provisions have never been reviewed
and there may be scope for these rules to be made simpler.
3. A written ministerial statement has been made today, publishing the
remit for the LPCs 2013 report. Full details of the remit will shortly
be available at www.parliament.uk
4. When the minimum wage was launched in 1999, the main rate was £3.60.
It is now set at £6.08 per hour. On the 19th
March the Government announced the following rates will come into
effect on 1 October 2012:
The adult rate will increase by 11p to £6.19 an hour
The rate for 18-20 year olds will remain at £4.98 an hour
The rate for 16-17 year olds will remain at £3.68 an hour and
The rate for apprentices will increase by 5p to £2.65 an hour.
5. 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.
About the Author
© Crown Copyright. Material taken from the BIS Department for Business, Innovation and Skills. Reproduced under the terms and conditions of the Click-Use Licence.
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Article Published/Sorted/Amended on Scopulus 2012-07-06 16:20:30 in Economic Articles