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Fair treatment of individuals enhances commitment and competitiveness. Flexibility and adaptability – both crucial to competitiveness – need to be underpinned by basic minimum standards. The Government has introduced legislation for a national minimum wage below which pay should not fall. This will be a single hourly rate for all regions, sectors and sizes of company. Together with tax and benefit reforms, the minimum wage will help to promote incentives for individuals to find and make the most of jobs. It will ensure greater fairness at work and remove the worst exploitation. It will promote competitiveness by encouraging firms to compete on quality rather than simply on labour costs and price. The Low Pay Commission has consulted widely and its report will propose the rate at which the minimum wage should be set

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