The government has provided evidence to the Low Pay Commission (LPC) to be used in setting the level of national minimum wage (NMW) from October 2015.
The evidence, submitted on 15 October, also restated the government’s commitment to seeing the NMW rise as fast as possible without negatively affecting significant jobs growth seen in the UK.
Employment relations Minister Jo Swinson said: “This month we have introduced the first above inflation rise in the National Minimum Wage since 2007. But I’m keen to go further if possible, which is why we have asked the Low Pay Commission to consider how we can increase the real value of the NMW, without having an adverse impact on jobs.”
“I also want to explore how we can ensure apprentices are being paid the right wage and help employers by simplifying the apprenticeship pay system. I have asked the LPC to consider this.”
Ms Swinson highlighted the government’s commitment to enforcing the NMW to ensure everyone who is entitled to it receives it, which includes:
- increasing the enforcement budget by over £1 million to £9.2 million to increase the number of HM Revenue & Customs compliance officers; identifying businesses that exploit workers by paying them below the NMW
- naming and shaming businesses that pay their staff below the NMW and forcing them to pay the owed wages to their staff; and
- increasing the penalties employers face for not paying their staff the NMW from £5,000 to £20,000 per worker. This is included in the Small Business, Enterprise and Employment Bill that is currently progressing through Parliament.
The main rate of the NMW increased by 19p to £6.50 from 1 October 2014.
At Palmers, we can advise on all aspects of employment law, including those relating to the national minimum wage and other statutory payments, such as redundancy, sickness and maternity and paternity pay. Our HR package also offers regularly updated sample policies for these issues.
For more information and guidance, please visit our website or contact Lara Murray.