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Minimum Wage

Volume 706: debated on Thursday 22 January 2009

Statement

My right honourable friend the Minister of State for Employment Relations and Postal Affairs (Pat McFadden) has made the following Written Ministerial Statement.

The Low Pay Commission (LPC) has asked for the Government’s agreement to delay making recommendations on the national minimum wage (NMW) this year. The recommendations were due to be made by the end of February; the request is to extend this to 1 May. The Government have agreed.

The Low Pay Commission made this request to allow it to take account of two further months of data, including the Bank of England’s inflation report, employee job figures for December, GDP figures for the fourth quarter of 2008 and updates on average earnings. The Government agree that the LPC recommendations should be based on the best available evidence.

The delay will not impact on the planned date for entry into force of the new rates, on 1 October.