Agenda item

Naomi introduced item five.  Naomi stated that the Low Pay Commission is currently consulting on setting the level of the statutory National Minimum Wage and the National Living Wage for April 2020. The consultation also seeks views on the approach to be taken after 2020. This report sets out the LGA’s proposed response to the consultation.

Following the update by Naomi, members discussed the following:

-      Members discussed question 13, and the figure of 60 to 66 per cent given in the response.  Members reminded officers that this would significantly impact councils and prove very expensive for the local government sector.  

-                   Members discussed the wording used and how this should be strengthened.

-      Members discussed the low pay impact on differentials, as well as the big costs associated with raising the minimum wage limit.  They have to be talked about together.  Members stated that they don’t object to increasing the minimum wage, but this causes a natural pressure on services such as domestic and residential care homes. 

-      Members raised the issues of the social work workforce, and the difficulty to recruit and retain this essential workforce.  Members further mentioned the impact of Brexit on this. 

-                   Members agreed that higher pay is better, but awarded on a evidential basis.

The Chair concluded the discussion by giving an example of Islington raising the living wage, and how costs came in under budget due to a lack of recruitment and more retention.  The Chair then thanked members and officers of their contributions to the discussion.

Actions

1.          Members noted the update.

2.          Members agreed to the response.