- Anna Scott
The Low Pay Commission will consider what labour market conditions need to be in place in the medium term to allow further increases in wages, without having an adverse impact on jobs.
This will allow low paid workers to benefit from the emerging economic recovery, according to the Department for Business, Innovation & Skills.
Vince Cable, secretary of state for business, innovation and skills – who has requested the Low Pay Commission’s investigation – said the NMW is a vital safety net to protect the low paid.
“However, as signs of an economic recovery start to emerge, we need to do more to make sure that the benefits of growth are shared fairly across the board,” he added.
“In addition to [the LPC’s] ongoing annual remit, I am asking them to extend this expertise to help the government and business understand how we can deal with the issue of low wages in the economy.”
On 1 October, the national minimum wage will rise by 12p per hour to £6.31 for adults, and to £5.03 an hour for 18-to-20-year-olds, an increase of 5p. The biggest increase yet in the NMW was in 2001, when it increased by 40p per hour.