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National Minimum Wage

Volume 404: debated on Tuesday 15 April 2003

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To ask the Secretary of State for Trade and Industry what estimate she has made of the extra costs imposed on local authorities in the provision of (a) social services and (b) residential long-term care as a result of the increase in the national minimum wage.[109138]

The independent Low Pay Commission looked at this issue in their recent Report to the Government.1They noted,

"The impact of the uprating on particular groups of workers and wage structures in local Government has also been minimal. Evidence from the Employers' Organisation for local government stated our national pay negotiations and spinal column point framework mean that event hose on the lowest pay point are paid above the NMW".
1'Building on Success' released March 2003 p.69