CONSULTATION ON THE NATIONAL MINIMUM WAGE

    This briefing raises awareness of the current Low Pay Commission’s (LPC) consultation on the recommended National Minimum Wage (NMW) for October 2011.

    The LPC has a remit from Government to monitor, evaluate and review the impact of the NMW. They have been asked to look at the effect on pay, employment and competitiveness in the low-paying sectors, particularly the competitiveness of small firms, and at how the minimum wage affects different groups of workers. The LPC has also been asked to review the labour market position of young people, including those in apprenticeships and internships, and to review the arrangements for the new apprentice rate, which is applicable from October 2010.

    The LPC is looking for evidence on these issues and a set of the consultation questions are listed at the end of this briefing. Skills for Care & Development is particularly interested in providing a response on behalf of employers, particularly those which will impact upon apprenticeship opportunities and workforce development.

    Please can you provide any responses to Abubakar Askira, via e-mail Abubakar.Askira@ccwales.org.uk by Wed 1 September 2010. This will enable a

    response on behalf of the sector to be sent to the Low Pay Commission by their deadline of 10 September 2010. Further information is available at: http://www.lowpay.gov.uk/lowpay/index.shtml

Consultation Questions:

    ; How are firms coping with the minimum wage as the economy emerges from the recession?

    ; How has the NMW affected pay, conditions, pensions, employment and competitiveness in the low-paying sectors?

    ; How does the NMW affect the competitiveness of small firms?

    ; How significant is the NMW in comparison to other business pressures? ; How are the employment prospects of young people developing in the current labour market?

    ; Have the adverse effects of the recession been different for young people? ; What has been the labour market experience of young people with respect to apprenticeships and work experience opportunities, including internships? ; What has been the impact of the NMW on young people since its introduction? ; How important is pay in influencing the labour market outcomes for young people?

    ; What will be the likely impact of the new arrangements for an apprentice rate, particularly on the provision, take-up, and completion of apprenticeship opportunities?

    It may be helpful when responding to consider that from 1 October 2010 the NMW rates will be:

    ; ?5.93 an hour for workers aged 21 and over

    ; ?4.92 an hour for workers aged 18 to 20

    ; ?3.64 an hour for workers aged 16 to 17

    The new apprentice rate will be introduced on the same date at ?2.50 per hour.

    The LPC’s policy is to make responses to the consultation available publicly unless respondents specifically request otherwise. They may also quote from consultation responses in their reports. If you do not wish all or part of your response (including your identity) to be made public, please state in your response which parts you wish to keep confidential.

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