Minimum wage set to increase to £6.31 - Money - News - Moneyfacts

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Minimum wage set to increase to £6.31

Minimum wage set to increase to £6.31

Category: Money

Updated: 16/04/2013
First Published: 15/04/2013

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The Government has announced the UK minimum wage will rise to £6.31 an hour with effect from October this year, remaining below the level of inflation.

Workers aged between 18 and 20 will, by law, have to receive a minimum wage of £5.03 per hour, whilst those on apprenticeships will have their minimum hourly wage increased by 3p to £2.68, despite some opposition from the Low Pay Commission (LPC).

The business secretary, Vince Cable, revealed the Government had reached an agreement with the LPC regarding the minimum hourly pay for youths and adults, but that the commission had suggested a freeze on wages for apprentices.

Speaking to the BBC, Mr Cable claimed that evidence had revealed "a significant number of employers are not paying apprentices the relevant minimum wage rate".

"Apprenticeships are at the heart of our goal to support a stronger economy, and so it is important to continue to make them attractive to young people," he said. "Therefore, I am not taking forward the LPC's recommendation to freeze the apprenticeship rate due to non-compliance, but instead am raising it in line with the youth rates.

"We are working on a series of tough new measures to ensure we tackle non-compliance issues across the board," he concluded.


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