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Press Release 16 March 1999 LOW PAY COMMISSION PUBLISH PAPER ON ‘DEVELOPING OFFICIAL DATA ON LOW PAY’ The Low Pay Commission today called for further improvements to sources of official data on the level of employees’ earnings. In an occasional paper entitled ‘Developing Official Data on Low Pay’ the Commission note that improving the quality of data will be a ‘crucial aspect’ of its monitoring and evaluation of the National Minimum Wage. They argue that work should continue ‘to improve the quality of information collected from the two main official sources [the New Earnings Survey and Labour Force Survey].’ The paper acknowledges ‘very good’ work undertaken by the Office for National Statistics last year to produce revised estimates of low pay. It demonstrates that the gap between the two survey estimates of the number of employees likely to be affected by the minimum wage has been narrowed considerably. The most recent estimates suggest that around 1.9 million employees are likely to be entitled to higher pay as a result of the National Minimum Wage. Over a million will be part-time women. A higher proportion of young people will also be entitled to higher pay. Industries most affected will be hospitality and business services. The new data also confirm the Commission’s original calculation that the direct cost of the National Minimum Wage will be small - around half of one percent of the current national wage bill. The new figures still leave some uncertainty. While a higher proportion of groups such as ethnic minority workers and homeworkers will be entitled to higher pay the precise numbers are difficult to quantify. The Commission suggest that results from the New Earnings Survey be made more representative by taking into account the poorer response from low paying industries. The Commission also believe that estimates of paid hours worked from the Labour Force Survey are artificially high which means that derived estimates of hourly pay are too low. The Commission notes that the analysis of official data is an important part of its current work plan which also includes an extensive consultation and research programme, culminating in a report in December this year. 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 | |
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