June 19, 2014

UK Government releases minimum wage remit to Low Pay Commission

The UK government released its annual minimum wage remit to the Low Pay Commission (LPC) this week, for regulations to be put in place from October 2015.

This year, the LPC has been asked to focus on simplifying minimum wage rates for apprentices, in a bid to improve employer compliance. Existing rates are dependent on a variety of factors, such as the apprentice’s age and employment duration, which leave room for confusion. Analysts estimate that nearly a quarter of apprentices are currently being paid less than their legal entitlement. (Read more on investing in apprenticeships.)

The Government has also asked the LPC to explore the possibility of introducing above-inflation increases in minimum wage rates. With the economy continuing to strengthen, the LPC will assess how faster wage rises could affect employment. (Read more on employment effects of minimum wages.)

Trade Union Congress General Secretary Frances O’Grady said she would “welcome moves to simplify the system”, to leave “no hiding place for exploitative employers”.

She commented: “Now the economy is finally growing again, we can well afford to see a substantial increase in the minimum wage next year”.

Read more on the remit here.

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