Low Pay Commission Explained

The Low Pay Commission (LPC) is an independent body in the United Kingdom, established in 1997, that advises the government on the National Minimum Wage. It is an advisory non-departmental public body of the Department for Business and Trade (DBT).

History and role

The LPC was established in July 1997 on a non-statutory basis before being confirmed in legislation by the National Minimum Wage Act 1998.

Each year, the LPC advises the government on what rates the different minimum wages in the UK should be, announcing its recommendation six months before it would come into force. It is then up to the government to accept or reject the LPC's recommendations. The government has usually accepted the wage levels advocated by the LPC.^[1]

Structure

The LPC consists of nine Low Pay Commissioners who are selected by the DBT. The Commissioners are a mixture of employers, trade unionists and academics.^[2]

Chairs

• 2009 to 2017 – Sir David Norgrove^[3]
• 2017 to 2024 (2017 to 2019 as interim chair) – Bryan Sanderson^{[4] [5]}
• 2024 to present – Baroness Philippa Stroud^[6]

Proposals for reform

In March 2014 the Resolution Foundation issued the report More Than A Minimum which proposed that the LPC's role should be expanded to include publishing the following:

• An indication of its intentions for the minimum wage one year ahead.
• Analysis to show which sectors of the economy could afford to pay more than the minimum wage to encourage wage rises.
• Advice for government on low pay policy in the same way that the Office of Budget Responsibility influences fiscal policy.^[7]

See also

• Minimum wage law

External links

• • Catalogue of evidence submitted to the LPC, 1997–1998, held at the Modern Records Centre, University of Warwick

Notes and References

1. News: 26 February 2014. Minimum wage: The Low Pay Commission backs a 3% increase. BBC News. 11 March 2014.
2. Web site: Low Pay Commission: About. gov.uk. 11 March 2014.
3. Web site: Margaret Thatcher adviser takes role as Low Pay Commission chairman. Hencke. David. 2009-03-27. The Guardian. en. 2020-05-12.
4. Web site: Bryan Sanderson appointed interim Chairman of the Low Pay Commission. 17 February 2017. GOV.UK. en. 2020-05-12.
5. Web site: Mr Bryan Sanderson. GOV.UK. en. 2020-05-12.
6. Web site: Low Pay Commission announces new Chair and Commissioners. 30 January 2024. GOV.UK. en. 2024-04-14.
7. News: Alan Tovey. Low Pay Commission needs shake-up to keep up with changing world. The Telegraph. 12 Mar 2014. 18 March 2014.