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Minimum wage to increase to £6.08 an hour

Minimum wage to increase to £6.08 an hour

Category: Money

Updated: 08/04/2011
First Published: 07/04/2011

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 It is now over 6 months old so the content may be out of date.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 minimum wage will increase across all age tiers in October, although adults will gain the most.

The Government has accepted all of the Low Pay Commission's recommendations, meaning that adults will have to be paid a minimum of £6.08 an hour from October, up from £5.93.

The Low Pay Commission is a body that advises the Government on the National Minimum wage.

It said that the recommendations were based on economic evidence and took the state of the UK economy into account.

"The UK economy is forecast to grow, but the pace is uncertain," it said.

"We believe our recommendations are appropriate and balance the needs of low-paid workers and the challenges faced by businesses."

Wage increases for younger workers have not been quite as significant, with rises as follows:

  • Youth Development Rate (18-20 year olds), up from £4.92 to £4.98
  • 16-17 year olds, up from £3.64 to £3.98 an hour
  • Apprentices, up from £2.50 to £2.60 an hour

Rising unemployment amongst young people in the UK has been a growing concern since the beginning of the economic downturn, and the commission said that the smaller rise had been recommended to protect them from being priced out of jobs.

As well as increasing the minimum wage for apprentices, the Low Pay Commission has asked the Government to take steps to raise awareness of minimum wage requirements for workers on such schemes after evidence showed a number of employers were flouting the rules.

"We believe raising awareness of the minimum wage rules and more effective enforcement are the best ways to tackle this misuse," the commission added.

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