The Secretary of State for Business, Innovation and Skills (Vince Cable)
The Low Pay Commission’s 2014 report and recommendations to the Government are being published in full today, alongside the Government’s response.
The Low Pay Commission’s 2014 report
The main recommendations put forward by the Low Pay Commission concern the rates of the national minimum wage.
The commission has recommended that the adult hourly rate of the national minimum wage should increase from £6.31 to £6.50. The commission has recommended increasing the development rate, which covers workers aged 18 to 20-years-old, from £5.03 to £5.13 and increasing the rate for 16 to 17-year-olds from £3.72 to £3.79. It recommends that the apprentice rate should increase from £2.68 to £2.73. It is recommended that these changes take place in October 2014.
The commission has also recommended that the accommodation offset increases from the current £4.91 to £5.08 in October 2014.
The Government accept all of the rate recommendations.
Government’s response to individual recommendations in the Low Pay Commission’s 2014 report
National Minimum Wage Rate Recommendations
We recommend that the adult rate of the national minimum wage be increased by 3%, or 19p, to £6.50 an hour, from 1 October 2014.
We recommend an increase of 2% in the youth development rate to £5.13 an hour, in the 16 to 17-year-old rate to £3.79 an hour and in the apprenticeship rate to £2.73 from 1 October 2014.
Government Response
The Government accept the national minimum wage rate recommendations.
Accommodation Offset
We recommend that the accommodation offset be increased by 3.5%, to £5.08 a day, from 1 October 2014.
Government Response
The Government accept the accommodation offset recommendation.
Other Recommendations
Migrant Domestic Workers
We recommend that the Government should review the law, and take the next available opportunity to legislate and clarify the entitlement of migrant domestic workers to the national minimum wage.
Government Response
The Government fully agree that non-compliance in this area needs to be reduced. As suggested by the Low Pay Commission, the Government will look at this area of national minimum wage legislation and consider the full range of options to reduce non-compliance.
The Low Pay Commission’s report has been presented to Parliament today (Command Paper Number 8816). Copies will be available in the Vote Office and Printed Paper Office. In addition, copies of the Government response have been placed in the Libraries of both Houses.