Government sets out minimum wage remit for Low Pay Commission

The government has set out its remit for the Low Pay Commission’s 2015 report.


Its aim is to have national minimum wage rates that help as many low-paid workers as possible, while making sure that it does not damage their employment prospects.

The government has asked the Low Pay Commission to:

  • Monitor, evaluate and review the levels of each of the different national minimum wage rates and make recommendations on the levels it believes should apply from October 2015.
  • Consider whether any changes can be made to the apprentice rate to make the structure simpler and improve compliance; and whether the structure and level of the apprentice rate should continue to be applied to all levels of apprenticeship, including higher levels.
  • Review the conditions that need to be in place to allow the value of the minimum wage to increase in real terms. This would include an update on the Low Pay Commission’s advice on the future path of the national minimum wage.

The Low Pay Commission has also been asked to report to the prime minister, deputy prime minister and the secretary of state for Business, Innovation and Skills by February 2015.

The remit stated: “I appreciate the key role that the Low Pay Commission plays in the success of the national minimum wage.

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“Over the past 15 years, the national minimum wage has helped to eliminate extreme low pay and preserve jobs in the face of falling output during the economic recession.

”The Low Pay Commission has been asked to consider in its recommendations whether, as it concluded in its 2014 report, we are entering a new phase where real increases in the national minimum wage can be afforded.”