Policy News Journal - 2015-16

New National Minimum Wage offenders named and shamed 9 February 2016

More than 90 employers who have failed to pay their workers the National Minimum Wage have been named and shamed .

Between them, the 92 companies named owed £1,873,712 in arrears, and cover sectors including hairdressing, social care, hospitality and security services. All the cases were thoroughly investigated by HM Revenue and Customs (HMRC).

Since the scheme was introduced in October 2013, 490 employers have been named and shamed, with total arrears of over £3,000,000 and total penalties of over £1,100,000.

From 1 April 2016 the government’s new National Living Wage will become law. Workers aged 25 years or over who are not in the first year of an apprenticeship will be legally entitled to at least £7.20 per hour.

The National Living Wage will be enforced in the same way as the current National Minimum Wage.

Businesses or employees who have any questions about the National Minimum Wage can contact Acas online .

National Minimum Wage increases from October 2016 15 March 2016

The Low Pay Commission’s minimum wage rate recommendations have been accepted by the Government. The 21-24 year old rate will increase from £6.70 to £6.95.

The Low Pay Commission (LPC) has welcomed the Government’s acceptance of its recommendations for the rates of the minimum wage affecting workers under 25 and apprentices to apply from 1 October 2016, including:

 its first recommendation for the effective new minimum wage for 21-24 year olds, an increase by 3.7 per cent to £6.95 an hour  an increase in the Youth Development Rate, affecting 18-20 year olds, of 4.7 per cent to £5.55 an hour  an increase in the 16-17 Year Old Rate of 3.4 per cent to £4.00 an hour  an increase in the Apprentice Rate of 3 per cent to £3.40 an hour. For workers aged 25 and over, the Government is introducing the £7.20 National Living Wage - in effect a fifth minimum wage rate - from 1 April 2016. The LPC will make recommendations this Autumn on the rate of the National Living Wage to apply from April 2017, bearing in mind the Government’s ambition for the rate to reach 60 per cent of median earnings by 2020, subject to sustained economic growth. It will continue to advise on the other rates on its previous basis: protecting as many low-paid workers as possible without damaging jobs or the economy. The key focus for these recommendations was the position of 21-24 year olds because - as a consequence of the introduction of the National Living Wage - this group effectively becomes a new age band within the minimum wage (the previous adult rate - applicable to workers 21 and over - now only affects these workers).