The Government has announced the Low Pay Commission’s (LPC) remit for its 2013 Report. The LPC will continue to monitor, evaluate and review the national minimum wage (NMW) and its impact, and review the levels of each of the different rates.
In addition, the Government wants the LPC to pay particular attention to:
• the youth rates. The Government has included a specific reference to young people due to continuing concerns about the youth labour market, and the need to consider the impact of the raising of the (learning) participation age in England (to increase from 16 to 18 between 2013 and 2015) on the youth and apprentice rates
• the accommodation offset. Currently, employers can offset the cost of providing accommodation against the NMW, up to a specified limit. The Government agrees with the LPC’s view in its 2012 Report that it is appropriate to review the evidence base and the rationale for the provisions, and
• salaried workers. The Government wants the LPC to review the provisions for workers who are paid an annual salary in monthly/weekly instalments. The Government believes that there may be scope for these rules, which have never been reviewed, to be simplified.
The LPC will make its recommendations to the Prime Minister, the Deputy Prime Minister and the Secretary of State for Business, Innovation and Skills by the end of February 2013.