Low Pay Commission
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Low Pay Commission's 2011 report

Low Pay Commission's 2011 report

News Release issued by the COI News Distribution Service on 07 April 2011

The Low Pay Commission today welcomed the Government's confirmation that from October 2011 the National Minimum Wage will increase in line with its recommendations.

From 1 October 2011, the adult minimum wage rate will increase from £5.93 to £6.08 an hour, the Youth Development Rate will rise from £4.92 to £4.98 an hour and the 16-17 Year Old Rate will increase from £3.64 to £3.68 an hour. The Apprentice Rate will also increase from £2.50 to £2.60 an hour.

The Chair of the Low Pay Commission, David Norgrove said:

"Our recommendations this year are, as ever, based on sound economic evidence and take account of the prospects for the UK economy. The UK economy is forecast to grow, but the pace is uncertain. We believe our recommendations are appropriate and balance the needs of low-paid workers and the challenges faced by businesses.

"The position of young people in the labour market continues to be of concern. Their employment prospects have suffered more than adults. We recommended a lower increase for young people in order to help protect their labour market position.

"We received evidence this year which indicated a number of employers were ignoring minimum wage rules with regard to internships and some other forms of work experience. We believe raising awareness of the minimum wage rules and more effective enforcement are the best ways to tackle this misuse.

"Our recommendations have the unanimous support of Commissioners and we are pleased that the Government has accepted them".

Notes to Editors

1. The Low Pay Commission is a statutory body whose role is to advise the Government on the National Minimum Wage.

2. The Low Pay Commission submitted its report to the Government on 25 February 2011, in accordance with its remit. The Government published and responded to this report on 7 April 2011.

3. The 2011 Report is the Commission's twelfth report. All reports are available from the Stationery Office Bookshops or the Commission's website at: http://www.lowpay.gov.uk.

4. The members of the Low Pay Commission are:
David Norgrove (Chair), Chair of the Family Justice Review Panel and Trustee of the British Museum; Susan Anderson, Director of Public Services and Skills at the CBI; Professor Bob Elliott, Professor of Economics and Director of the Health Economics Research Unit at the University of Aberdeen; Neil Goulden, Chairman (emeritus) of the Gala Coral Group; John Hannett, General Secretary of the Union of Shop, Distributive and Allied Workers; Peter Donaldson, Managing Director of D5 Consulting Ltd; Professor Stephen Machin, Professor of Economics at University College London and Research Director, Centre for Economic Performance, London School of Economics; Frances O'Grady, TUC Deputy General Secretary and Heather Wakefield, National Secretary for UNISON's Local Government Service Group.

5. A full list of this year's recommendations follows. The Government accepted all of the recommendations.

National Minimum Wage Rates
We recommend that the adult rate of the minimum wage rate be increased by 15 pence to £6.08 per hour from October 2011 (para 5.61).

We recommend that the Youth Development Rate be increased by 6 pence to £4.98 an hour and that the 16-17 Year Old Rate be increased by 4 pence to £6.68 from October 2011 (para 5.64).

Apprentices We recommend the apprentice wage should increase by 10 pence an hour to £2.60 per hour from October 2011 (para 5.66).

Accommodation Offset We recommend that the accommodation offset should increase from £4.61 to £4.73 per day from October 2011 (para 5.62).

Social Care We recommend that the commissioning policies of local authorities and the NHS should reflect the actual costs of care, including the National Minimum Wage (papa 2.74).

Compliance We recommend that the Government takes steps to raise awareness of the rules applying to payment of the National Minimum Wage for those undertaking internships, all other forms of work experience, and volunteering opportunities. In addition, we recommend that these rules are effectively enforced by HMRC using its investigative powers (para 4.38).

Low Pay Commission
6th floor
Victoria House
Southampton Row
London WC1B 4AD
Tel. 020 7271 0451
Web: http://www.lowpay.gov.uk


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