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Million to gain from minimum wage rise

Million to gain from minimum wage rise


The national minimum wage increase of 15p an hour, announced after recommendations from the Low Pay Commission, will benefit nearly a million workers, the government has announced.

Ministers accepted the commission's recommendations to raise the minimum wage, which will increase by 15p an hour to £6.08 in October.

The new adult rate is £6.08, and the statutory wage for 18 to 20-year-olds will increase by 6p to £4.98 an hour, while the rate for 16 to 17-year-olds will increase by 4p to £3.68 an hour and the rate for apprentices by 10p to £2.60 an hour.

Business secretary Vince Cable said more than 890,000 of Britain's lowest-paid workers will gain from the changes, which reflect the economic uncertainty but protect the lowest-paid workers.

David Frost, director general of the British Chambers of Commerce, said: "It's clear from speaking to businesses that a significant number are having to freeze wages in 2011. These changes will be a barrier to job creation, and ultimately economic recovery."

TUC general secretary, Brendan Barber, said: "These rises are relatively modest, but they will provide a welcome pay boost for around 840,000 low-paid workers. With research suggesting that workers on the minimum wage spend 100% of their pay rises where they live or work, these increases should provide a modest stimulus to local economies."

Copyright © Press Association 2011

Low Pay Commission


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