Published on March 13th, 2014 | by The GC Team0
One million set to benefit from National Minimum Wage rise
The government has approved a rise in the National Minimum Wage to £6.50 per hour later this year.
More than a million people will see their pay rise by as much as £355 a year when the rise takes effect in October, as Business Secretary Vince Cable has accepted in full the independent Low Pay Commission’s recommendations for 2014.
The Business Secretary also welcomed the LPC’s assessment that 2014 will mark the start of a new phase of bigger increases, provided economic conditions continue to improve.
The Low Pay Commission said the rise, the first real terms cash increase since 2008, is manageable for employers and will support full employment.
The National Minimum Wage rates from 1 October 2014, as recommended by the LPC, will be:
- 19p (3%) increase in the adult rate (from £6.31 to £6.50 per hour);
- 10p (2%) increase in the rate for 18-20 year olds (from £5.03 to £5.13 per hour)
- 7p (2%) increase in the rate for 16-17 year olds (from £3.72 to £3.79 per hour)
- 5p (2%) increase in the rate for apprentices (from £2.68 to £2.73 per hour)
Vince Cable commented: “The LPC’s new forward guidance gives us a much better understanding of how an economic recovery can be translated into faster and significant increases in the National Minimum Wage for low paid workers, without costing jobs.
“The experts will continue to advise government on future wage rises to help the low paid, and in the meantime I urge businesses to consider how all their staff – not just those on the minimum wage – can enjoy the benefits of recovery.”