Overview

This bill mandates the Secretary of State to set a target for the Low Pay Commission (LPC) to increase the National Minimum Wage (NMW) faster than median earnings over a five-year period. The LPC must report on progress and, if the target is unattainable, propose solutions. The bill also empowers the LPC to form taskforces to address low pay in specific sectors.

Description

The bill introduces several key requirements:

• Target Setting: The Secretary of State must set a target for the LPC to increase the NMW at a rate exceeding the growth of median earnings over five years.
• Reporting Requirements: The LPC must report to the Secretary of State on steps to meet the target. If the target is deemed unachievable, the LPC must provide evidence, recommend government actions, and submit this information to Parliament.
• Taskforce Establishment: The Secretary of State must ensure the LPC can establish taskforces comprising employers, unions, and other stakeholders to address low pay in specific sectors. These taskforces can develop strategies, publish plans to improve productivity, and possibly recommend higher minimum wages in those sectors.

Government Spending

The bill doesn't directly specify government spending. However, achieving the NMW target may necessitate increased government expenditure if it leads to increased social welfare payments or other compensatory measures. No figures are provided in the bill itself.

Groups Affected

This bill could affect various groups:

• Low-paid workers: Potentially positive impact through higher wages.
• Employers: Increased labor costs, potentially leading to price increases or reduced profitability.
• Low Pay Commission: Increased workload and responsibilities.
• Government: Potential increase in spending on social welfare programs.
• Specific sectors identified by task forces: Potential for targeted interventions to address low pay.

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