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National Minimum Wage

Volume 565: debated on Thursday 27 June 2013

The Government have today written to the Low Pay Commission setting out the remit for its 2014 report.

The Government support the national minimum wage (NMW) because of the protection it provides to low-paid workers and the incentives to work it provides. Our aim is to have NMW rates that help as many low-paid workers as possible, while making sure that we do not damage their employment prospects.

The Low Pay Commission (LPC) is asked to:

Monitor, evaluate and review the levels of each of the different NMW rates and make recommendations on the levels it believes should apply from October 2014.

Review the contribution the NMW could make to the employment prospects of young people.

In making recommendations in the areas set out above, the Low Pay Commission is asked to take account of the state of the economy, and employment and unemployment levels.

Timing

In addition, the LPC is asked to report to the Prime Minister, Deputy Prime Minister, and the Secretary of State for Business, Innovation and Skills by end February 2014.

Copies of the remit have been placed in the Libraries of both Houses.