Member Article

‘Above inflation’ rise in Minimum Wage set to affect 1 million workers

Over 1 million of Britain’s lowest-paid workers are set to benefit as new National Minimum Wage (NMW) rates come into force from today.

The rate rise to £6.50 per hour follows the recommendations from the independent Low Pay Commission (LPC) in March this year as well as opposition leader Ed Miliband promising to raise minimum wage to £8.00.

The National Minimum Wage rates from 1 October 2014, as recommended by the LPC, include a 19p (3%) increase in the adult rate (from £6.31 to £6.50 per hour), a 10p (2%) increase in the rate for 18 to 20-year-olds (from £5.03 to £5.13 per hour), a 7p (2%) increase in the rate for 16 to 17-year-olds (from £3.72 to £3.79 per hour) and a 5p (2%) increase in the rate for apprentices (from £2.68 to £2.73 per hour)

The rate rise will mean more than 1 million people are set to see their pay rise by as much as £355 a year.

Business Secretary Vince Cable said: “The National Minimum Wage provides a vital safety net for the lowest paid, ensuring they get a fair wage whilst not costing jobs.

“This year’s rise will mean that they will enjoy the biggest cash increase in their take home pay since the banking crisis, benefiting over 1 million people in total.

“I believe it is vital that the Low Pay Commission’s recommendations - not political considerations - should set national minimum wage rates.

“As signs of a stronger economy start to emerge, we need to do more to make sure that the benefits of growth are shared fairly across the board.

“The Low Pay Commission will continue to advise government on future wage rises and ensure the minimum wage keeps pace with inflation.”

This was posted in Bdaily's Members' News section by Clare Burnett .