News
Consultation on the National Minimum Wage
20 August 2010
The Low Pay Commission (LPC) has been asked by the Government to make a further report on the National Minimum Wage (NMW) by the end of February 2011, with its recommendations for NMW rates for October 2011.
The LPC terms of reference for this year have been broadened to include a review of the labour market position of young people, including those in apprenticeships and internships, and a review of the new apprenticeship rate (£2.50 per hour) which will come into effect on 1 October 2010. The new adult hourly rate of the NMW, payable from 21 years of age (rather than 22 as at present) of £5.93 also takes effect from that date, together with the Youth Development Rate of £4.92 hourly and the rate for 16-17 year olds of £3.64 hourly. The full remit for this year's review can found here.
The LPC is also asking for evidence in relation to a number of questions, including:
- How are firms coping with the minimum wage as the economy emerges from the recession?
- How significant is the National Minimum Wage in comparison to other business pressures?
- How are the employment prospects of young people developing in the current labour market?
- Have the adverse effects of the recession been different for young people?
- What has been the labour market experience of young people with respect to apprenticeships and work experience opportunities, including internships?
- What has been the impact of the minimum wage on young people since its introduction?
- How important is pay in influencing the labour market outcomes for young people?
- What will be the likely impact of the new arrangements for an apprentice rate, particularly on the provision, take-up, and completion of apprenticeship opportunities?
NB: other questions relate particularly to the competitiveness of small firms and low paying sectors.
The LPC has asked the EFA for an informal meeting in September to discuss young people.
The full detail of the consultation, which closes on 10 September, can be found here. Can you please respond either to us at the EFA by 31 August, send to berith.aguirre@efa.org.uk, or directly to the LPC by 10 September to lpc@lowpay.gov.uk.
For your information, the LPC will also be undertaking a number of visits around the UK to allow Commissioners to hear directly from those affected by the NMW. If you would like more information or wish to arrange a meeting with the Commission please contact Kim Brinkworth on 020 7215 8199. The schedule for this year includes:
- London 10 September
- Ipswich or Lowestoft 22 September
- Barnstable or Cornwall 7-8 October
- Londonderry 20-21 October
- Ayr 25-26 November
The Commission's report for 2009 and other relevant background material can be found on the LPC website at http://www.lowpay.gov.uk/lowpay/index.shtml