The Chartered Institute of Payroll Professionals ……………………………………………………………Policy News Journal
reducing hours; reducing jobs; replacing over 25s with younger workers; or increasing prices.
It is estimated that as a result of the NLW, by 2020 there would be 60,000 fewer jobs that there would otherwise have been.
The introduction of the NLW alongside a new 21-24 year old age band led to renewed interest in the rationale behind NMW age-banding, fears that workers over 25 would be discriminated against in favour of younger, cheaper workers.
The rationale for minimum wage age banding has typically been that younger workers occupy a more vulnerable position in the labour market, with a greater need to acquire experience and that if younger workers were eligible for the full minimum wage they might be priced out of the labour market.
The LPC has always supported lower minimum wages for younger workers.
CIPP comment
A consultation has been published which is seeking evidence to inform the Low Pay Commission's (LPC) report on the level of the UK’s minimum wage rates to apply from April 2017- 2018, on which they have been asked to make recommendations to the government by October 2016. On the National Living Wage, the LPC are particularly interested in evidence on the effect of the introductory rate of £7.20 on workers, employers, the labour market and the economy - including how firms and workers are adjusting and impacts on pay, terms and conditions etc. and also views of the projected ‘on target’ rate for April 2017 - the current estimate is to be around £7.60 in April 2017, rising to just over £9 by 2020.
The CIPP Policy Team will be running a survey shortly and will also be hosting a think tank with the Low Pay Commission later this month to help inform the report.
Back to Contents
CIPP Survey: your views and experiences on the impact and rates of the NLW and NMW 13 June 2016
The CIPP Policy & Research team has produced a survey to aid in the gathering of data and experiences from employers and payroll professionals that will help to measure the impact of the National Living Wage and the National Minimum Wage.
Background
The Low Pay Commission (LPC) recently published a consultation which seeks to gather evidence to inform the Low Pay Commission's report on the path of the National Living Wage and the National Minimum Wage rates to apply from April 2017. Set against the background of the recent introduction of the National Living Wage (NLW), a higher rate for workers aged 25 and over, the Low Pay Commission have been asked also to advise on the path to 60 per cent of median earnings by 2020 ‘subject to sustained economic growth’ . For the rates affecting those aged under 25 and apprentices, the LPC have been asked to continue to make recommendations on their traditional basis of ‘helping as many low-paid workers as possible without damaging their employment prospects’. All the rates are being aligned to run from April 2017.
On the National Living Wage, the LPC are particularly interested in:
The Chartered Institute of Payroll Professionals
Policy News Journal
cipp.org.uk
Page 346 of 588
Made with FlippingBook - Online magazine maker