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Press Notices   >>Back to Press notice index Press Release 12 June 2002 LOW PAY COMMISSION WELCOMES NEW TERMS OF REFERENCE AND NEW CHAIRMAN The Low Pay Commission is pleased that the Government has asked it to prepare a further report on the operation of the National Minimum Wage and to review the minimum wage rates. This work will be carried out under the chairmanship of Adair Turner, who succeeds Professor Sir George Bain as Chairman of the Low Pay Commission. Outgoing Chairman George Bain said: "I have been privileged to chair the Low Pay Commission since it was first established in 1997, to have led the Commission in making recommendations to Government on the introduction of the National Minimum Wage, and to have seen the minimum wage become firmly established as part of British working life. I now feel that this is the right time for me to step down from the Commission. I wish Adair Turner every success as the Commission looks forward to preparing its next report. He brings to the job a wealth of experience, an informed interest in the issues addressed by the Commission and a keen understanding of the background against which the issues are set. I am also pleased to welcome Angie Risley onto the Commission. She replaces Stephanie Monk. Stephanie has played an important role in helping to set the Commission on secure foundations, to work together as a team, and to shape its recommendations to Government. I would like to offer her my warmest thanks for the contribution she has made to the Commission’s work." Commenting on his new appointment, Adair Turner said: "In the short time since it was first introduced, the National Minimum Wage has made a real difference to the lives of many people on low pay. And it has done so without any significant adverse impact on employment or the economy. It has been a real success story. The Low Pay Commission has built up a reputation for high quality, independent advice to Government, based on rigorous analysis and widespread consultation. I look forward to working with fellow Commissioners to continue this tradition." In carrying out its work for the next report, the Commission is keen to hear from all groups with an interest in the National Minimum Wage, and particularly from those with direct experience of its impact. The Commission will consult widely. It is inviting written comments on the issues identified in the terms of reference, and will continue its series of meetings and discussions with interested parties. The deadline for written comments is Friday 4 October 2002. Notes to Editors 1. The Low Pay Commission is a statutory body whose role is to advise the Government on the National Minimum Wage. 2. The Commission has produced four reports. These are available from the Stationery Office Bookshops or the Commission’s website at: http://www.lowpay.gov.uk 3. The members of the Low Pay Commission are: Adair Turner (Chairman), Vice Chairman, Merrill Lynch Holdings Ltd; Professor William Brown CBE, Professor of Industrial Relations, University of Cambridge; David Coats, Head, Economic and Social Affairs Department, Trades Union Congress; John Cridland, Deputy Director-General, Confederation of British Industry; Paul Gates OBE, General Secretary, National Union of Knitwear, Footwear and Apperal Trades; Ian Hay OBE, Chairman, Food Trade Association Management Professor David Metcalf, Professor of Industrial Relations, London School of Economics; Margaret Prosser OBE, Former Deputy General Secretary, Transport and General Workers Union; and Angie Risley, Human Resources Director, Whitbread PLC. 4. The National Minimum Wage for those over 21 is £4.50 per hour. For those aged 18 to 21 or over 21 but in the first six months of a new job with a new employer and receiving accredited training, the rate is £3.80 per hour. The Government has accepted the Commission's recommendation that subject to confirmation in early 2004 - there should be further increases to £4.85 and £4.10 from 1 October 2004. Low Pay Commission Elizabeth House 39 York Road London SE1 7NQ Tel. 020 7855 4553 LOW PAY COMMISSION Terms of reference for the fourth report The Low Pay Commission (LPC) is asked to: continue to monitor and evaluate the impact of the national minimum wage, with particular reference to the effect on pay, employment and competitiveness in low paying sectors and small firms; the effect on different groups of workers; the effect on pay structures; and the interaction between the national minimum wage and the tax and benefit systems; and review the levels of both the main national minimum wage rate and the development rate and make recommendations, if appropriate, for change. In making its recommendations, the LPC should have regard to the wider economic and social implications; the likely effect on employment, especially amongst disadvantaged groups in the labour market, and inflation; the impact on the costs and competitiveness of business; and the potential costs to industry and the Exchequer. The LPC should also have regard to its current research remit as published by the Government on 16 October 2001. This asked the LPC to commission research investigating the impact of the minimum wage on the employment levels of various age groups, the link with training and skills and the impact of the minimum wage on business as a whole and small businesses in particular. The Commission is asked to report to the Prime Minister and the Secretary of State for Trade and Industry by the end of February 2003.   Back to top