Policy News Journal - 2016-17

The Chartered Institute of Payroll Professionals ……………………………………………………………Policy News Journal

a) the person is a student at a higher or further education institution based in the UK who is required to undertake an internship or equivalent work placement as part of his or her course; b) of compulsory school age; c) undertaking an approved English apprenticeship as set out in the Apprenticeships, Skills, Children and Learning Act 2009; or d) meets the terms of a definition set out in regulations made by the Secretary of State or, as the case may be, the relevant Scottish, Welsh or Northern Ireland Ministers.

Full details are set out in the National Minimum Wage (Workplace Internships) Bill .

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Low Pay Commission recommendations for National Minimum Wage rates 24 November 2016

The 18 th report from the Low Pay Commission met with success as the recommendations for minimum wage rates for all age groups for April 2017 were accepted in full by the Chancellor of the Exchequer Phillip Hammond.

The Low Pay Commission (LPC), an independent body that advises the Government on the level of the minimum wage, welcomed the acceptance of its recommendations which were published in full shortly after the Autumn Statement had been delivered in Parliament.

LPC Chair Sir David Norgrove said:

“The LPC is required to make recommendations on the pace of increase in the National Living Wage such that it reaches 60 per cent of typical earnings by 2020, subject to sustained economic growth. The key challenge this year has been uncertainty in relation to the economic outlook following the decision to leave the EU, and whether we needed to go more slowly than our previous intention of straight line increases in the relative value of the rate. The 4.2 per cent increase keeps the National Living Wage on course for the 2020 goal. The recommendation was a finely balanced decision. On the one hand, it is a significant increase at a time of average pay growth of around 2 per cent and should help protect low-paid workers from the higher inflation likely to result from the depreciation of sterling. On the other hand, it is lower than we previously projected and should help manage risks to employment. The adjusted level reflects the fact that pay growth and forecasts have been weaker than expected and a relative target automatically moves in line with them. A material worsening in economic performance and prospects would lead us next year to consider whether to recommend slower increases than needed to stay on a straight line path.

Looking ahead, the cash figure for 2020 is inevitably very uncertain. However, using October 2016 data, we estimate 60 per cent of median earnings will be £8.61, within a range of £8.50 to £8.73. This is down from £9.16 in the spring.”

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BEIS publish government response to LPC report 25 November 2016

BEIS have published the government’s response to the rate recommendations made by the Low Pay Commission (LPC) for the National Minimum Wage as well as the National Living Wage as from 1 April 2017.

The publication section of GOV.UK was extremely busy in the hours that followed the Autumn Statement and the Department for Business, Energy & Industrial Strategy (BEIS) published the government response to the LPC recommendations for National Minimum Wage rates.

The Low Pay Commission report included the recommendations that:

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