Overview

This bill proposes amending the national minimum wage to allow for variations based on local labor market conditions. The Low Pay Commission would investigate areas with above-average unemployment and recommend whether a lower minimum wage should apply in those specific locations.

Description

The bill mandates that the Low Pay Commission investigate areas with unemployment rates exceeding the national average. This investigation will focus on employment opportunities and the impact of the national minimum wage on job creation and access to work within these "travel to work areas" (defined by the Office for National Statistics).

Based on this investigation, the Commission can recommend a lower minimum wage for specific regions. If the Commission recommends a lower minimum wage, the Secretary of State must create regulations to implement this change through a statutory instrument, subject to parliamentary approval. Crucially, existing employment contracts will remain unaffected by any such changes.

Government Spending

The bill states that any government expenditure resulting from its implementation will be funded from Parliament. No specific figures are provided.

Groups Affected

• Low-wage workers: Workers in high-unemployment areas could face lower minimum wages if the bill passes.
• Employers in high-unemployment areas: Businesses in these areas might experience reduced labor costs.
• The Low Pay Commission: The Commission will have additional responsibilities in conducting the required investigations.
• Parliament: Parliament will need to approve any regulations setting locally varied minimum wages.
• Secretary of State: The Secretary of State will be responsible for enacting any changes to minimum wage legislation.

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