Overview

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

Description

The Minimum Wage (Amendment) Bill mandates the Low Pay Commission to investigate areas with unemployment rates exceeding the national average. The Commission must consider employment opportunities and the minimum wage's impact on job creation within these "travel to work areas," as defined by the Office for National Statistics. Based on this investigation, the Commission can recommend a lower minimum wage for these specified areas.

If the Low Pay Commission recommends a lower minimum wage, the Secretary of State must enact regulations to implement the change. These regulations require parliamentary approval and must be presented to Parliament within three months of the Commission’s recommendation. Importantly, any changes cannot affect existing employment contracts.

Government Spending

The bill states that any expenditure incurred by a Minister of the Crown or a government department due to this Act, and any increase in sums payable under other Acts as a result of this Act, will be funded from money provided by Parliament. No specific figures are provided within the bill text.

Groups Affected

• Workers in high-unemployment areas: Could experience a lower minimum wage, potentially impacting their earnings.
• Employers in high-unemployment areas: Might see reduced labor costs, potentially increasing hiring.
• The Low Pay Commission: Will have additional responsibilities in conducting inquiries and making recommendations.
• Parliament: Will need to approve any regulations implementing a lower minimum wage.
• Secretary of State: Responsible for implementing the regulations following a recommendation from the Low Pay Commission.

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