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


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

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 It is now over 6 months old so the content may be out of date.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.

What next?

Find out how to choose the best bank account by reading our guides to help you open and manage your bank account.
Find all the best cash ISAs with Savings search
Download your free guide to ISAs

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Parents to spend £552 on children this half term

Autumn has truly arrived – and half term with it. This looks to be bad news for parents’ wallets, as research from American Express shows they will be spending an average of £276 per child this holiday break.

Are you still funding your children’s lifestyle?

While many parents like to provide financial support to their children while they grow up, often helping out with things like weddings, cars and university fees, others find that they fund more of their children’s lifestyle than they’d like.

Household spending on Christmas drops again

Brace yourselves: tomorrow we’ll be just 70 days away from Christmas. As 39% of Brits have already started their holiday shopping, research has found that household spending on Christmas has fallen for the second year in a row.