Skip to main content
GOV.UK uses cookies to make the site simpler. Find out more about cookies
GOV.UK
Search
Search
Menu









Search
Departments
Worldwide
How government works
Get involved
Policies
Publications
Consultations
Statistics
Announcements
Contents
1.
2.
3.
4.
The purpose of the Low Pay Commission
The aim of the LPC
The commissioners
The operation of the LPC
Low Pay Commission homepage
Terms of reference
An outline of the Low Pay Commission's purpose, aim and operation, with information on the
commissioners and their code of conduct.
The purpose of the Low Pay Commission
The Low Pay Commission (LPC) is an advisory non-departmental public body, established
under the National Minimum Wage Act 1998. Its purpose is to provide independent advice to the
government on matters relating to the National Minimum Wage referred to it by the Secretary of
State for Business, Innovation and Skills.
The aim of the LPC
The aim of the LPC is to recommend levels for the minimum wage rates that will help as many
low-paid workers as possible without any significant adverse impact on employment or the
economy. The advice the LPC offers the government, in pursuit of this aim, is based on the best
available evidence.
The commissioners
The LPC consists of a chair and 8 other commissioners appointed by the Secretary of State.
Commissioners are appointed following the code of practice for ministerial appointments to
public bodies. This is issued by the Commissioner for Public Appointments.
The LPC aims to have a balance of commissioners who have knowledge of, or experience or
interest in:



trade unions or matters relating to workers
employers associations or matters relating to employers generally
independent areas - with other relevant knowledge or experience, for example, academic
experts in labour markets
The operation of the LPC
The LPC publishes a business plan each year. The business plan includes details of its remit, key
milestones, research programme, and the resources allocated to fulfil its function.
The LPC is told about the issues it is required to consider by way of a ‘remit’ from the
government (usually annually). To respond to the remit, the LPC publishes a report, which is
submitted to the government within a specific timetable.
In considering the issues in the remit, the LPC completes detailed analysis of the evidence before
making any recommendations. It takes an open and consultative approach to its work. The
information it uses is gathered through wide-ranging research and consultations, including visits,
discussions with businesses, workers, representative bodies, government and academics. In
reporting to the government, the LPC explains the procedures it used, along with the reasons for
its recommendations.
The minimum requirement for formal meetings of the LPC is 5 commissioners, including an
independent, an employer and an employee commissioner. If the chair is absent for any formal
meeting, one of the independents chairs instead.
Further details concerning the operation of the LPC can be found in the code of conduct.
Code of conduct for members of the Low Pay Commission
PDF, 28.8KB, 7 pages
This file may not be suitable for users of assistive technology.
Request a different format.
If you use assistive technology and need a version of this document in a more accessible format,
please email lpc@lowpay.gov.uk. Please tell us what format you need. It will help us if you say
what assistive technology you use.
These terms of reference will be reviewed periodically.
Help us improve GOV.UK
Don’t include personal or financial information, eg your National Insurance number or credit
card details.
What you were doing
Send
What went wrong
Services and information



Benefits
Births, deaths, marriages and care
Business and self-employed





Childcare and parenting
Citizenship and living in the UK
Crime, justice and the law
Disabled people
Driving and transport








Education and learning
Employing people
Environment and countryside
Housing and local services
Money and tax
Passports, travel and living abroad
Visas and immigration
Working, jobs and pensions
Departments and policy






How government works
Departments
Worldwide
Policies
Publications
Announcements
Support links






Help
Cookies
Contact
Terms and conditions
Rhestr o Wasanaethau Cymraeg
Built by the Government Digital Service
Open Government Licence
All content is available under the Open Government Licence v3.0, except where otherwise stated
© Crown copyright