National Minimum Wage

Vince Cable Excerpts

Wednesday 8th June 2011 Written Statements

[The Secretary of State for Business, Innovation and Skills (Vince Cable)]

The Government have today written to the Low Pay Commission setting out the remit for its 2012 report.

The Government support the national minimum wage (NMW) and have asked the Low Pay Commission (LPC) to evaluate and make recommendations in the areas set out below, taking account of the economic and labour market context, including pensions reform.

Specifically, I have asked the Low Pay Commission to:

1. Monitor, evaluate and review the levels of each of the different minimum wage rates, with particular reference to previously identified groups and sectors, and make recommendations for October 2012.

2. Review the labour market position of young people, including those in apprenticeships and internships.

3. Consider whether NMW regulations can be made even simpler and easier to administer. This might include the removal, simplification or consolidation of any elements of the NMW.

In addition, as part of the simplification agenda, I have requested that the LPC considers the implications of the proposed abolition of the Agricultural Wages Board for England and Wales, pending the outcomes of legislative process and consultation.

4. Consider the best way to give business greater clarity on future levels of the NMW, including the option of two-year recommendations, and implement the chosen solution as part of the 2012 report. Also, consider whether any of the other recommendations could be introduced more promptly.

Timing

The Low Pay Commission has been asked to report to the Prime Minister and me by the end of February 2012.

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