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Low Pay Commission

Volume 461: debated on Thursday 21 June 2007

We are today setting the Low Pay Commission as follows:

LPC terms of reference for their 2008 report.

The Low Pay Commission is asked to:

Monitor, evaluate and review the NMW and its impact, with particular reference to the effect on pay, employment and competitiveness in the low paying sectors and small firms; the effect on different groups of workers, including different age groups, ethnic minorities, women and people with disabilities and migrant workers; the effect on pay structures; and taking into account any forthcoming changes to the statutory annual leave entitlement; review the levels of each of the different minimum wage rates and make recommendations for October 2008.

Contribute to Government consultations and reviews on major policy issues impacting the national minimum wage.

Report to the Prime Minister and Secretary of State for Trade and Industry by the end of February 2008.

The Government consider it inappropriate for the Low Pay Commission to review apprentice and pre-apprentice exemptions at this time, as the Government are currently consulting on plans to raise the participation age in education, which includes plans to expand apprenticeships.