From today, employees on the minimum wage will see their pay increase by 12p to £6.31 per hour.
Also coming into effect from today is a new measure that will see employers who don't pay workers the minimum wage publicly named and shamed - a move that the Government hopes will make it easier to clamp down on rogue businesses.
Plans to increase the minimum wage were first announced in April this year, after the Low Pay Commission recommended a rate which supported low paid workers without damaging their chances of getting a job.
The pay rate for 18 – 20 year olds will increase by 5p to £5.03 an hour, for 16 – 17 year olds by 4p to £3.72 and for apprentices by 3p to £2.68.
However, with inflation at 2.7%, the latest increase, which only amounts to 1.9%, means workers' pay is still failing to keep up with the real cost of living.
In fact, the Resolution Foundation - which is a think tank that focuses on the standards of living - said this is the fifth year in row that minimum wage increases have fallen behind rising inflation.
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