Department for Business, Innovation and Skills
Printable version E-mail this to a friend

Low Pay Commission consultation on the National Minimum Wage

Low Pay Commission consultation on the National Minimum Wage

News Release issued by the COI News Distribution Service on 22 June 2012

Low Pay Commssion
The Low Pay Commission has launched a public consultation to obtain views on the operation of the National Minimum Wage (NMW). This consultation is part of a wider evidence gathering exercise, following the Government’s publication of the Commission’s remit for this year. The remit has requested the Commission consider a number of aspects of the NMW and make recommendations on the level of the different rates from October 2013.

Commenting on the launch of the consultation, the Chair of the Low Pay Commission, David Norgrove, said “Receiving evidence directly from those affected by, or with an interest in, the minimum wage is very important. We want to hear from as many people and organisations as possible.”

The public consultation is just one way the Commission obtains evidence before making recommendations to the Government. It also: undertakes a series of visits around the UK speaking to interested parties; commissions research on, among other things, the impact of the NMW; undertakes in-house analysis on a wide range of data; and holds oral evidence sessions to speak directly to stakeholders.

The consultation can be found at

The Low Pay Commission’s remit for this year is below, in “Notes to Editors”.

Notes to Editors 1. The Low Pay Commission is a statutory body whose role is to advise the Government on the National Minimum Wage. Each February it submits a report making recommendations as to what the NMW rates should be. Information on how the Commission undertakes its activities can be found at

2. The Commission has produced thirteen reports. These are available from the Stationery Office Bookshops or the Commission’s website at:

3. The members of the Low Pay Commission are: David Norgrove (Chair), Chair of PensionsFirst and Deputy Chairman of the British Museum; Susan Anderson, consultant to the CBI on employment issues and a member of Acas Council; Professor Bob Elliott, Professor of Economics and Director of the Health Economics Research Unit at the University of Aberdeen; Neil Goulden, Director, Neil Goulden Consulting Ltd; 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.

4. The Government provided the Commission with its remit on 14 June. The remit asked the Commission to:

Monitor, evaluate and review the levels of each of the different NMW rates and make recommendations on the levels it believes should apply from October 2013.Review the contribution the NMW could make to the employment prospects of young people, including those in apprenticeships. As part of this review, the LPC is asked to consider the implications of the introduction of the Raising of the Participation Age in England on the youth rates and the apprentice rate.Review the accommodation offset.Evaluate the regulations for salaried hours workers and consider whether there are any measures that the Government could take to ensure that it is as simple and easy as possible for employers to make sure they are paying at least the NMW and for individuals to be confident that they are being paid at least the NMW.

In evaluating and making recommendations in the areas set out above, the LPC is asked to take account of the state of the economy and employment and unemployment levels. There is also the wider policy context to consider, including pensions’ reform, the introduction of universal credit, the raising of the personal tax allowance, any implications of the proposed abolition of the Agricultural Wages Board for England and Wales (pending the outcome of the legislative process), and other Government reforms that may affect the NMW.

The LPC is asked to report to the Prime Minister, Deputy Prime Minister, and the Secretary of State for Business, Innovation and Skills by the end of February 2013.

5. The National Minimum Wage for those aged 21 and over is £6.08 per hour. For those aged 18 to 20 the rate is £4.98 per hour. The minimum wage for 16 and 17 year olds is £3.68 an hour. The Apprentice Minimum Wage is £2.60 per hour for those aged under 19 or in the first year of their apprenticeship. The Government has accepted the Commission’s 2012 recommendation that the adult and Apprentice Rates should increase to £6.19 and £2.65 respectively from 1 October, and that the other two rates should remain unchanged.

Low Pay Commission 6 th Floor Victoria House Southampton Row LONDON WC1B 4AD Tel. 020 7271 0451


BIS Press Office

Carrie Aitken
Phone: 020 7271 0451