Government submits NMW evidence to Low Pay Commission

Business Secretary Vince Cable has submitted the Government’s final analysis on employment and the economy for the independent Low Pay Commission (LPC). The LPC will consider this as part of wider evidence when making its recommendations on National Minimum Wage (NMW) rates for this year.

Last September, the Business Secretary also asked the LPC to carry out an additional assessment of the economic conditions that will allow for faster increases in NMW rates without an adverse effect on jobs. The Government has also submitted its analysis in response to this work.

The Government’s evidence does not set out final policy. It forms part of the annual process for NMW rate setting, and is considered by the LPC’s expert panel alongside other evidence before they recommend new rates.

Each year the Government sets the LPC, which includes representatives from business, unions and academia, a remit to maximise the minimum wage without putting the jobs of low-paid workers at risk.

The evidence – as in previous years – provides analysis on the latest data for the labour market, pay levels, young people and wider economic issues. It does not make any recommendations regarding the level or direction for NMW rates. This is for the independent LPC to do when it reports back to government.

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If you need help with an employment law matter, including advice on issues involving the National Minimum Wage, contact our specialist solicitors on 01224 370 208 or fill in our enquiry form today.

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