 |
|
|
 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Low Pay Commission
8th Floor
Oxford House
76 Oxford Street
London
W1D 1BS
General enquiries:
020 7467 7207
Press enquiries:
020 7467 7279
E-mail:
lpc@lowpay.gov.uk
|
|
|
|
| |
|
|
| |
Chairman's Foreword
>>Back to main report index
1. In the first volume of our third report we concluded that the National Minimum Wage has been a success. It has benefited many workers without any discernible adverse impact on employment. And around 70 per cent of beneficiaries have been women, hence the minimum wage has contributed to a significant narrowing of the gender pay gap. We also recommended that the main rate should increase to £4.10 per hour from October 2001 and to £4.20 per hour from October 2002, which the Government has accepted. This second volume contains important analyses and recommendations about how the minimum wage is working in practice, its effect on incomes, and its impact on young people, other groups and on low-paying sectors. We also look at compliance and enforcement and suggest how the minimum wage should be reviewed in future.
2. Once again, the treatment of young people posed a considerable challenge. In this volume we outline a longer-term strategy that will continue to protect their employment. We remain convinced that, in line with the practices of the vast majority of employers, 21 year olds should be included in the adult rate. We have made this recommendation in our previous two reports, and we hope that the Government will now agree that it would be prudent to accept it.
3. In our first report, three years ago, we noted that workers and employers wanted protection from both unfair pay and competition based upon unfair pay. The National Minimum Wage has addressed this matter: the worst excesses of low pay have largely been removed and firms can compete on the quality of their goods and services rather than low pay alone. Many workers have benefited without any adverse impact on employment or competitiveness. The challenge is to maintain the value of this achievement. We believe that there needs to be a defined process of regular reviews that will reassure low-paid workers that the protection provided by the minimum wage will continue and that will allow businesses to plan ahead. We have learned a great deal from the combination of an empirical approach and the experience of the businesses and workers affected by the minimum wage. Anyone can set a minimum wage rate. The trick is to set one that will benefit low-paid workers without damaging the economy and, consequently, their employment prospects. The Low Pay Commission, whose members have a wide range of experience, has played a key part in recommending an affordable minimum wage.
4. Together the two volumes of our report comprise a coherent package of recommendations that will ensure the minimum wage continues to be workable and worthwhile. I should like to thank my fellow Commissioners for the contribution they have made to this process, both in terms of the quality of their input and their personal commitment to making it work. As one of the Commissioners has noted, this has been a shared and mutual education. We have laid a firm foundation on which a future approach can safely be built.
|
| |
|
|
| |
|
