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Minimum wage to rise from October

Minimum wage to rise from October

Category: Economy

Updated: 12/05/2009
First Published: 12/05/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Low paid workers aged 22 and over will see minimum wage rise 7p to £5.80 an hour from October.

Meanwhile, the rate for 18 to 21-year-olds will improve to £4.83 an hour, an increase of 6p; and 16 to 17-year-olds can look forward to a hike of 4p, taking the minimum wage paid to their age group to £3.57 an hour.

According to the Government, the move will benefit almost one million of the UK's workforce.

As well as the rate changes, it has also been revealed that from October 2010, the adult rate of the minimum wage will be extended to include 21-year-olds.

In recent weeks, the British Chambers of Commerce asked that the minimum wage be kept on hold for fear of the extra damage a rise could do to businesses already struggling in the economic downturn.

"These are very challenging times for the UK and unprecedented economic circumstances for the minimum wage," admitted George Bain, chairman of the Low Pay Commission. "We believe that the recommendations are appropriate for this economic climate. They reflect the need to protect low-paid workers' jobs as well as their earnings."

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