NATIONAL MINIMUM WAGE
Low Pay Commission asked to pay particular attention to SMEs and youth employment
The government has today written to the Low Pay Commission (LPC) setting out the remit for its 2011 report. As with previous years the LPC will monitor, evaluate and review the national minimum wage 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
the employment prospects of young people, including those in apprenticeships and internships.
The LPC will report to the prime minister and the business secretary by the end of February 2011, with recommendations for October 2011.
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Rates from October 2010
The government has also accepted the recommendations in the LPC’s 2010 report and laid regulations to bring these into force. The new hourly rates, which will come into effect on 1 October 2010 will be:
£5.93 for low paid workers aged 21 and over (increased from £5.80)
£4.92 for 18-20 year olds (£4.83)
£3.64 for 16-17 year olds (£3.57).
For the first time there will also be an apprentice minimum wage of £2.50 per hour. The new rate will apply to those apprentices who are under 19 or those that are aged 19 and over but in the first year of their apprenticeship.
Employment Relations Minister Edward Davey said: “The increases to the national minimum wage this year are appropriate for the economic climate. They will strike a balance between helping the lowest paid whilst at the same time not jeopardising their employment.”
He added: “Workers on the national minimum wage are disproportionately likely to be employed by small firms and so it is right the Low Pay Commission considers their competitiveness when they make their recommendations for next year. SMEs will be vital to our economic recovery”.
In addition to the rate increases, the government has accepted the recommendations that:
there should be specific guidance on the national minimum wage for the entertainment sector
that HMRC investigates whether contract and agency cleaners in the hotel sector are receiving their entitlement under the national minimum wage for their hours worked.
the accommodation offset will rise from £4.51 per day to £4.61.
Want to know more?
Department for Business Innovation and Skills: You can download details of the announcement of the latest hike in the minimum wage by accessing the BIS web site.
Web: www.berr.gov.uk/Policies/employment-matters/rights/nmw.
Directgov: The government site provides an easy-to-use guide to UK employment law, including minimum wage regulations.
Web: www.directgov.gov.uk.
Low Pay Commission: The LPC was established as a result of the National Minimum Wage Act 1998 to advise the government about the national minimum wage.
Web: www.lowpay.gov.uk.