Labour & European Law Review Weekly Issue 434 26 August 2015
As a result of changes the government is making to the National Minimum Wage (NMW), the Low Pay Commission is asking for views on existing rates and the potential impact of the National Living Wage.
The government has asked the Commission to:
- Monitor, evaluate and review the levels of the adult, youth and apprentice rates and, in February 2016, make recommendations on the increase it believes should apply from October 2016
- Provide a recommendation by October 2016 on the level of the National Living Wage which it believes should apply from April 2017
- For both the existing rates and the new rate, the Commission has been asked to provide indicative recommendations for the following year, not just rates for one year.
The consultation’s main focus is reaching recommendations for the future level of the existing rates, not on the future level of the National Living Wage, but the Commission makes clear in the consultation document that it is very interested in initial views on the National Living Wage and its likely impact.
Alongside this, the Government is undertaking a review into the NMW cycle, with the intention of aligning the timetable for all NMW changes. (Subject to the review, the earliest alignment could happen is April 2017).
As part of the consultation process, the commissioners are also carrying out a programme of visits around the UK to listen directly to anyone affected by the NMW. In order to meet up with a commissioner, interested parties can find the locations and dates on the Commission’s website.
Neil Todd of Thompsons Solicitors commented ”The consultation carried out by the Low Pay Commission should make very interesting reading and the fact it is organising a programme of visits around the UK to ensure an extensive range of contributions to its findings is welcome news.”
The consultation closes on 25 September 2015.
To read the document, go to: https://www.gov.uk/government/consultations/national-minimum-wage-2015-2016-evidence
The Commission’s website address is: https://www.gov.uk/government/organisations/low-pay-commission