New minimum wage rates announced

The adult minimum wage rate will increase in October by 15p to £6.08 per hour, Business Secretary Vince Cable has announced today.

The adult minimum wage rate will increase in October by 15p to £6.08 per hour, Business Secretary Vince Cable has announced today.
The Government has accepted the recommendations of the Low Pay Commission (LPC) – the independent body set up to advise on the national minimum wage.
The rate for 18-20-year-olds will rise by 6p to £4.98 an hour, while the rate for 16-17-year-olds will go up by 4p to £3.68 an hour.
The rate for apprentices will increase by 10p to £2.60 an hour.
”More than 890,000 of Britain’s lowest-paid workers will gain from these changes,” said Mr Cable. ”They are appropriate  – reflecting the current economic uncertainty while at the same time protecting the UK’s lowest-paid workers.”
The Government is to invite the LPC in its next report to consider the best way to give business greater clarity on future levels of the national minimum wage, including consideration of two-year recommendations.
This is designed to provide greater certainty for businesses, to reduce risks and help them plan employment and investment decisions.
David Norgrove, chairman of the LPC, said: ”We welcome the Government’s acceptance of our recommendations.  The Commission was again unanimous, despite all the economic uncertainties.
”We believe we have struck the right balance between the needs of low-paid workers and the challenges faced by businesses.”
TUC general secretary Brendan Barber welcomed the rise.
”The increases in minimum wage rates show that the Government understands the national minimum wage must remain an important part of working life,” he said.
”These rises are relatively modest, but they will provide a welcome pay boost for around 840,000 low-paid workers in the UK.
”It is only fair that employers play their part in combating low pay, and the LPC has taken great care to ensure that the new rates are set at a level that will not damage job creation in these uncertain economic times.”





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