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Government announces new terms of reference for Low Pay Commission (LPC)

New terms of reference for the Low Pay Commission (LPC), which advises the Government on the national minimum wage, were published by DTI today.

Under the new terms the LPC is asked to:

• Continue to monitor, evaluate and review the NMW and its impact, with particular reference to the effect on pay, employment and competitiveness in the low paying sectors and small firms; the effect on different groups of workers, including different age groups, ethnic minorities, women and people with disabilities; the effect on pay structures; and taking into account the forthcoming changes to the statutory annual leave entitlement.

The LPC has been asked to report to the Prime Minister and Secretary of State for Trade and Industry by the end of February 2007.