National Minimum Wage – Low Pay Commission terms of reference for 2011 ReportWednesday, June 30th, 2010
In March 2010, the Low Pay Commission (LPC) published its eleventh National Minimum Wage Report. The recommendations for an increase of approximately 2% in the National Minimum Wage (NMW) rates from October 2010 were accepted by the Labour government at the time.
Draft Regulations have been published which, in addition to increasing the rates to those proposed by the LPC, amends the legislation as it relates to apprentices. We will explain these changes when the Regulations are finalised.
On 21 June 2010, the Coalition government confirmed its acceptance of the recommendations and wrote to the LPC setting out the terms of reference for its next Report in 2011. As in previous years, the LPC will monitor, evaluate and review the National Minimum Wage (NMW) and its impact, and review the levels of each of the different minimum wage rates.
This year the LPC is also asked to pay particular attention to:
- the competitiveness of small firms; and
- the employment prospects of young people, including those in apprenticeships and internships.
The LPC will report to the Prime Minister and the Secretary of State for Business, Innovation and Skills by the end of February 2011, with its recommendations for October 2011.
In response to the Government’s letter setting out its remit for 2011, the LPC issued an open letter to interested parties inviting comments on the following questions related to the employment prospects of young people:
- How are firms coping with the minimum wage as the economy emerges from the recession?
- How has the National Minimum Wage affected pay, conditions, pensions, employment and competitiveness in the low-paying sectors?
- How does the National Minimum Wage affect the competitiveness of small firms?
- How significant is the National Minimum Wage in comparison to other business pressures?
- How are the employment prospects of young people developing in the current labour market?
- Have the adverse effects of the recession been different for young people?
- What has been the labour market experience of young people with respect to apprenticeships and work experience opportunities, including internships?
- What has been the impact of the minimum wage on young people since its introduction?
- How important is pay in influencing the labour market outcomes for young people?
- What will be the likely impact of the new arrangements for an apprentice rate, particularly on the provision, take-up, and completion of apprenticeship opportunities?
Comments are requested by 10 September 2010.
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