Require the Secretary of State to set a target for the Low Pay Commission to
increase the minimum wage during the term of a Parliament; to require the
Low Pay Commission to write to the Secretary of State if this target cannot be
met; to require the Secretary of State to ensure that the Low Pay Commission
has the power to set up taskforces in certain sectors; and for connected
Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and
consent of the Lords Spiritual and Temporal, and Commons, in this present
Parliament assembled, and by the authority of the same, as follows:—
The Secretary of State must set the Low Pay Commission (“the Commission“)
a target to increase the National Minimum Wage over the relevant period
beginning on 7 May 2015 at a rate which ensures that the National Minimum
Wage increases at a higher rate than median earnings.
For the purposes of this Act the “relevant period” is a period lasting for five
The Low Pay Commission must present a report to the Secretary of State
setting out the steps necessary to meet the target over the course of a
Parliament and the Secretary of State must lay the report before Parliament.
In the event that the Low Pay Commission concludes, based on evidence about
the state of the economy, that the target set out in section 1 cannot be met
within the relevant period, the Commission shall prepare and publish reports
in accordance with the provisions of this section.
(2) A report under this section shall-
provide evidence to support the Commission‘s case that it is not
possible to meet the target, including but not limited to a significant
decline in the state of the economy or levels of employment;
Low Pay Commission (National Minimum Wage) BillPage 2
make recommendations for actions to be taken by the Government in
order to allow the target set out in section 1 to be met; and
be presented to the Secretary of State who must lay the report before
The Secretary of State shall ensure that the Commission has the powers
necessary to set up taskforces of key stakeholders, including employer
representatives, trade unions, and other relevant stakeholders, to identify and
tackle low pay levels in certain sectors.
The Commission may set objectives for a taskforce set up under subsection (1)
which may include-
development of a strategy outlining clear measures and goals to reduce
the incidence of low pay;
publication of a plan to tackle obstacles to productivity and levels of
performance in low paid sectors;
consideration of the case for recommending that the Secretary of State
take powers to set-
(i) recommended; and
minimum wage rates in the relevant sectors higher than the level of the
National Minimum Wage.
In this Act “National Minimum Wage” has the meaning given in the National
Minimum Wage Act 1998.
This Act may be cited as the Low Pay Commission (National Minimum Wage)
(2) This Act extends to England, Wales, Scotland and Northern Ireland.