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Minimum wage goes up by 7p

The national minimum wage is to increase by 7p to £5.80 an hour, the Government has announced. The new adult rate for workers aged 22 and over will come into effect in October.

The rate for 18- to 21-year-olds will rise from £4.77 to £4.83, while for 16- and 17-year-olds, the statutory rate will go up to £3.57 an hour from £3.53.

The Government said almost one million people will benefit from October’s increase after it approved recommendations from the independent Low Pay Commission.

Business Secretary Lord Mandelson said: “The national minimum wage has been in place for 10 years and remains one of the most important rights for workers introduced in that time.

“It protects them from exploitation and also creates a level playing field for business, making a huge contribution to the UK’s economic success.

“The Low Pay Commission has carefully examined the latest economic data before making their recommendations on the minimum wage rate, balancing the needs of workers and businesses in the current economic climate.”

Sarah Green, CBI North East Regional Director, said: “This moderate increase recognizes that many businesses are struggling, and helps protect jobs at a time of rising unemployment. The inflation-busting rise some unions had called for would have hit firms hard and put many lower paid workers on the dole.

“Over the past decade, the minimum wage has risen faster than average earnings and inflation, and a sensible, cautious approach now will help ensure this landmark piece of legislation continues to improve the lives of low paid workers for many years to come.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .