The Government is making major changes to the National Minimum Wage and has asked the Low Pay Commission (LPC) to report to it twice in relation to the new arrangements. Firstly, it has asked the LPC to report on the future level of the existing National Minimum Wage (NMW) rates, by as early as possible in February 2016. Secondly, it has asked the LPC to report on the future level of the new National Living Wage (NLW) rate, which is introduced in April 2016 and applies to workers over the age of 25. On this, the LPC has been asked to make recommendations, by October 2016, for the rate in April 2017.
In informing its recommendations, in July 2015 the LPC asked for submissions of evidence to its consultation. The LPC was seeking views on the existing rates and initial evidence on the potential impact of the NLW. It also invited interested groups to provide evidence into a number of different areas. The CIPD’s response directly addressed the following:
- Economic outlook
- Impact of the National Minimum Wage
- Future rates of the NMW
- The National Living Wage
- Compliance and enforcement