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Low Pay Commission

From Wikipedia, the free encyclopedia
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TheLow Pay Commission (LPC) is an independent body in the United Kingdom, established in 1997, that advises the government on theNational Minimum Wage. It is an advisorynon-departmental public body of theDepartment for Business and Trade (DBT).

History and role

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The LPC was established in July 1997 on a non-statutory basis before being confirmed in legislation by theNational Minimum Wage Act 1998.

Each year, the LPC advises the government on what rates the different minimum wages in the UK should be, announcing its recommendation six months before it would come into force. It is then up to the government to accept or reject the LPC's recommendations. The government has usually accepted the wage levels advocated by the LPC.[1]

Structure

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The LPC consists of nine Low Pay Commissioners who are selected by theDBT. The Commissioners are a mixture of employers,trade unionists andacademics.[2]

Chairs

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Proposals for reform

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In March 2014 theResolution Foundation issued the reportMore Than A Minimum which proposed that the LPC's role should be expanded to include publishing the following:

  • An indication of its intentions for the minimum wage one year ahead.
  • Analysis to show which sectors of the economy could afford to pay more than the minimum wage to encourage wage rises.
  • Advice for government on low pay policy in the same way that theOffice of Budget Responsibility influencesfiscal policy.[7]

See also

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References

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  1. ^"Minimum wage: The Low Pay Commission backs a 3% increase". BBC News. 26 February 2014. Retrieved11 March 2014.
  2. ^"Low Pay Commission: About". gov.uk. Retrieved11 March 2014.
  3. ^Hencke, David (27 March 2009)."Margaret Thatcher adviser takes role as Low Pay Commission chairman".The Guardian. Retrieved12 May 2020.
  4. ^"Bryan Sanderson appointed interim Chairman of the Low Pay Commission".GOV.UK. 17 February 2017. Retrieved12 May 2020.
  5. ^"Mr Bryan Sanderson".GOV.UK. Retrieved12 May 2020.
  6. ^"Low Pay Commission announces new Chair and Commissioners".GOV.UK. 30 January 2024. Retrieved14 April 2024.
  7. ^Alan Tovey (12 March 2014)."Low Pay Commission needs shake-up to keep up with changing world".The Telegraph. Retrieved18 March 2014.

External links

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