The Low Pay
Commission today welcomed the Government's acceptance of
its recommendations on rates for the National Minimum Wage (NMW)
from October 2012.
From 1 October 2012, the adult minimum wage rate will increase
from £6.08 to £6.19 an hour, the Youth Development Rate will
remain at £4.98 an hour and the 16-17 Year Old Rate will remain at
£3.68 an hour. The Apprentice Rate will increase from £2.60 to
£2.65 an hour.
The Chair of the Low Pay Commission, David Norgrove said:
"Our recommendations this year are, as ever, based on
extensive economic evidence and take account of the prospects for
the UK economy. Although the economy is forecast to grow through
2012 and 2013, the expected pace of growth is uncertain and is
likely to be low. We believe our recommendations for October 2012
balance the needs of low-paid workers against the challenges
facing businesses, particularly small businesses.
The position of young people in the labour market is a cause for
concern. Their employment prospects continue to suffer more than
those of other workers. Our recommendations to freeze the youth
rates were made reluctantly, and may help to increase the relative
attractiveness of young people to employers.
For apprentices, over the past year apprenticeship starts have
increased for all age groups and we have recommended a 5p increase
in the Apprentice Rate.
Business told us that the NMW simplification they want is not
change to the law, but clear and accessible advice about it. We
have concerns over the quality and availability of guidance on the
NMW so have recommended improvements to the guidance.
very concerned over the apparent low levels of awareness of rights
and obligations under the NMW and also that the policy announced
last January of publicly naming wilful infringers has not been
used. We would like to see the Government take actions to raise
awareness, and also to make frequent use of naming policy to show
that those who infringe the NMW get caught and punished."
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. Low Pay Commission submitted its report to the Government on
15 February 2012, in accordance with its remit. The Government
published and responded to this report on 19 March 2012.
3. The 2012 Report is the Commission's thirteenth
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:
(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.
5. A full list of this year's recommendations follows.
National Minimum Wage Rates
We recommend that the adult rate
of the National Minimum Wage be increased by 11 pence to £6.19 an
hour from 1 October 2012 (paragraph 5.83).
We recommend a Youth Development Rate of £4.98 an hour and a
16-17 Year Old Rate of £3.68 an hour from 1 October 2012
We recommend that the Apprentice Rate be increased by 5 pence to
£2.65 an hour from 1 October 2012 (paragraph 5.87).
Accommodation Offset We recommend that the
accommodation offset be increased by 9 pence to £4.82 a day from 1
October 2012 (paragraph 5.84).
Simplification We recommend that in order to
make operating the National Minimum Wage as simple as possible for
all users, the Government puts in place, and maintains, effective,
clear and accessible guidance on all aspects of the minimum wage
particularly where there is significant evidence of ignorance or
infringing practice. As a first step, the Government should
undertake a review of all existing guidance (paragraph 4.54).
Compliance We recommend that the Government
should not only have a process for naming infringers but should
also make frequent use of it. The Government should also actively
seek other publicity opportunities which will help to signal that
those who infringe the National Minimum Wage get caught and
punished (paragraph 4.94).
We recommend that the Government should more actively
communicate both the rates themselves, and rights and obligations
under the National Minimum Wage. Communication activities about
the minimum wage should not be subject to the
Government's marketing freeze (paragraph 4.117).
Low Pay Commission
London WC1B 4AD
Tel. 020 7271
Phone: For enquiries please contact the issuing dept
Phone: 0207 271 0451