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24th June 2010

NEWS IN BRIEF

The Government has recently written to the Low Pay Commission (LPC) setting out the remit for their 2011 report.

In particular it has asked them to evaluate and review the NMW and its impact in relation to:

• the effect on pay, employment and competitiveness in low paying sectors, with particular reference to the competitiveness of small firms
• the effect on the pay structures and employment of different groups of workers, including different age groups, women, ethnic minorities, people with disabilities and migrant workers
• the labour market position of young people, including those in apprenticeships and internships
• the levels of each of the different minimum wage rates and make recommendations for the October 2011 review
• the arrangements for the apprentice minimum wage

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 their recommendations for October 2011.

The Government has also announced the following new hourly rates which will come into effect on 1 October 2010:

• £5.93 for workers aged 21 and over (up from £5.80)
• £4.92 for 18-20 year olds (up from £4.83)
• £3.64 for 16-17 year olds (up from £3.57).

For the first time there will also be an apprentice minimum wage of £2.50 per hour for anyone under 19 or anyone who is over 19 and in the first year of their apprenticeship.
And the accommodation offset will rise from £4.51 per day to £4.61.

Anyone who thinks they are not being paid the national minimum wage to which they are entitled should ring the Pay and Work Rights helpline number on 0800 917 2368.

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