Low Pay Commission consults on NMW and NLW

The Low Pay Commission (LPC) is running a consultation on both the existing rates of national minimum wage (NMW) and the potential impact of the introduction of the new national living wage (NLW) from April 2016. Comments are invited by 25 September 2015. The Commission is particularly seeking views on the impact of the NLW on employment hours, pay structures, differentials, progression, contract types and ‘profits’.

It is also keen to hear views as to whether the new NLW might have differential impacts on different groups of workers, for example, those working in different sectors or regions, and on women, ethnic minorities and disabled people. Those responding are also asked to consider the future relationship between the two nationally-set rates, including the annual cycle for their review, which as currently proposed will see the NLW reviewed in April whilst the NMW is reviewed in October each year.

The enforcement of the NMW is also covered by the consultation, and the Commission asks whether particular groups experience problems with obtaining the NMW, for example, apprentices, those working in social care, migrant workers or interns. It asks what more could be done to improve compliance and enforcement and whether workers and employers have enough information on the NMW. Finally, consultees are asked about the implications of moving to a single enforcement agency for some employment issues, including the NMW.

'Consultation on National Minimum Wage rates', Low Pay Commission, July 2015. Consultation closes 25 September 2015. To respond, please visit: https://www.gov.uk/government/consultations/national-minimum-wage-2015-2016-evidence