The government has asked the commission to continue to monitor and
evaluate the impact of the minimum wage and to make recommendations,
asked to report to the prime minister and the secretary of state for
trade and industry by the end of February 2003.
Ms Hewitt also announced the appointments of Adair Turner and Angie
Risley as the new chair and employer member at the commission, to
replace George Bain and Stephanie Monk who are standing
Ms Hewitt said:
'The Low Pay Commission has been instrumental in ensuring that the
minimum wage has been one of this government's greatest success
stories. Despite some scepticism before the minimum wage became law
in April 1999, it is now supported on all sides. This achievement is
largely because the commission's recommendations have struck the
right balance between benefiting over 1.5 million low paid workers,
without putting any undue burdens on business.
'I would like to thank George Bain and Stephanie Monk for all
their hard work over the last four years. The Low Pay Commission has
been successful thanks to the qualities of those serving on it, and
the way they have worked together as a team. I am confident that the
commission will benefit from the expertise of its new members and
continue to provide expert advice on the minimum wage.'
Terms of Reference
1. The Low Pay Commission, has been set the following terms of
The commission has been asked to:
- continue to monitor and evaluate the impact of the national minimum
wage, with particular reference to the effect on pay, employment
and competitiveness in low paying sectors and small firms; the
effect on different groups of workers; the effect on pay
structures; and the interaction between the national minimum wage
and the tax and benefit systems;
- review the levels of both the main national minimum wage rate and
the development rate and make recommendations, if appropriate, for
In making its recommendations, the commission has been asked to have
regard to the wider economic and social implications; the likely
effect on employment, especially amongst disadvantaged groups in the
labour market, and inflation; the impact on the costs and
competitiveness of business; and the potential costs to industry and
The commission has also been asked to have regard to its current
research remit as published by the government on 16 October 2001.
This asked the commission to commission research investigating the
impact of the minimum wage on the employment levels of various age
groups, the link with training and skills and the impact of the
minimum wage on business as a whole and small businesses in
The commission has been asked to report to the prime minister and the
secretary of state for trade and industry by the end of February
1. Adair Turner is vice chairman of Merrill Lynch Europe and was
formerly director-general of the CBI between 1995 to 1999. He is
replacing George Bain who is standing down.
1. Angie Risley, is group HR director at Whitbread and replaces
Stephanie Monk who is also standing down.
3. The new chair and employer member join William Brown,
Professor of Industrial Relations at the University of Cambridge;
David Coats, head of the Economic and Social Affairs Department at
the TUC; John Cridland, deputy director-general of the CBI; Paul
Gates, general secretary of the National Union of Knitwear, Footwear
and Apparel Trades; Ian Hay, chairman of the Scottish Association of
Master Bakers; David Metcalf, Professor of Industrial
Relations at LSE; and Margaret Prosser, deputy general secretary,
Transport & General Workers Union.
4. Copies of the LPC's Third Report (Volumes One and Two) on the
National Minimum Wage: Making a Difference are available from the
Stationery Office ISBN 0-10-150752-6 (Volume One) and ISBN
0-10-151752-1 (Volume Two) on telephone number 0870 600 5522.