August 03, 2011
Over the next month, we are putting together our annual evidence to the Low Pay Commission on the impact of the NMW. There are three areas on which we need the maximum early input from members: the employment prospects of young people; the overall impact of the NMW on differentials; and whether the rules of the NMW could be simplified. Please send your responses (all comments welcome) by Friday 2nd September to email@example.com
…YOUNG PEOPLE: In October, the hourly NMW for young people goes up by the equal lowest amounts ever (6p for ages 18, 19 and 20; 4p for ages 16 and 17)) in recognition of the high level of unemployment in this age group. Please let us know IN CONFIDENCE how many 16 to 24 year olds you employ now and how many you employed a year ago. Has their employment status changed (e.g., more or fewer part-timers among them)? What proportion are paid more than the age related NMW (currently £4.92 an hour for 18, 19 ad 20 year olds; £3.64 at age 16 and 17)? Has this changed (up or down) since the economic downturn? If you can assess this, what impact would a 2.5 per cent rise in the NMW rates in October 2012 (the same as this October’s adult increase) have on those 16 to 24 year olds’ jobs?
…DIFFERENTIALS: What impact has the NMW had on differentials in your business? Has it led you to remove supervisory layers? Overall, are you expecting to employ the same number of people or more or fewer in a year’s time? How much of any reduction is due to the NMW?
…THE RULES OF THE NMW: Are there any parts of the regulations on the NMW which you have difficulty with, for example the accommodation offset, and how have you tried to resolve these problems? Also, currently the annual October rises are announced at most six months ahead: is this enough notice, given that, the greater the notice, the longer the period over which the Low Pay
Commission is guessing at what the appropriate NMW will be at the end of the recommendation period?