National Minimum Wage

Norman Lamb Excerpts

Thursday 14th June 2012 Written Statements

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Norman Lamb)]

I am pleased to announce that the Government have today written to the Low Pay Commission setting out the remit for their 2013 report.

The Government support the national minimum wage (NMW) because of the protection it provides to low-paid workers and the incentives to work it provides. Our aim is to have NMW rates that help as many low-paid workers as possible, while making sure that we do not damage their employment prospects.

The Low Pay Commission (LPC) is asked 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.

Timing

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.

Copies of the remit have been placed in the Libraries of both Houses.