The independent Low Pay Commission (LPC) has been asked by Government to conduct its annual review of different National Minimum Wage (NMW) rates and make recommendations on the levels it believes should apply from October 2015.

In addition, the Government has asked the LPC to make recommendations on two new areas this year:

• To focus on how minimum wage rates for apprentices can be simplified. At the moment the rate an apprentice is paid is dependent on their age and how long they have been on their apprenticeship. The current system can be difficult for employers to understand, leading to poor compliance. The new remit will look at streamlining the apprenticeships rate so that apprentices get the minimum wage they are entitled to.
• Last September, Business Secretary Vince Cable asked the LPC to consider the wider economic impacts of faster rises that would restore the real value of the minimum wage. The Government has once again asked the LPC to assess whether it is possible to provide above inflation increases in minimum wage rates without harming employment, when it makes its recommendations for the 2015 rates.

The LPC is due to report on its findings to the Prime Minister, the Deputy Prime Minister and the Secretary of State for Business, Innovation and Skills in February next year.

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