15/04/2013

National Minimum Wage To Rise

The government has approved a rise in minimum wage by 12p to £6.31 an hour.

Business Secretary Vince Cable confirmed the government has accepted the independent Low Pay Commission’s recommendations for this year’s adult and youth rates.

The following rates will come into effect on 1 October 2013:

• the adult rate will increase by 12p to £6.31 an hour

• the rate for 18-20 year olds will increase by 5p to £5.03 an hour

• the rate for 16-17 year olds will increase by 4p to £3.72 an hour

• the apprentice rate will increase by 3p to £2.68 an hour.

• the accommodation offset increases from the current £4.82 to £4.91

Vince Cable said: "We are accepting its recommendations for the adult and youth National Minimum Wage rate increases, which I am confident strikes this balance. However, there is worrying evidence that 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. 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."

Chair of the LPC David Norgrove said: "We welcome publication of our 2013 Report today and the government’s acceptance of our recommendations on the level of the National Minimum Wage for adults and young people. We also very much welcome the government’s commitment to tackle non-compliance in the areas highlighted by us.

"The government will be working with employers, apprentices and training providers to improve awareness of rights and responsibilities on pay. Along with this, it will be undertaking focused enforcement work to clamp down on non-compliance by employers of apprentices.

"The government supports work experience as a valuable way of helping young people get into work. The law on the NMW is clear. Work experience as part of an education course and pre-employment provision is exempt under the NMW regulations. However, if somebody is a worker under NMW legislation, then they are entitled to the minimum wage."

(IT/CD)

Related UK National News Stories
Click here for the latest headlines.

30 September 2004
Low-paid workers boosted by new wage rates
Up to two million workers stand to gain from a pay rise from tomorrow as new rates for the National Minimum wage come into force. For the first time 16 and 17 year olds who are no longer of compulsory school age will be paid at least £3 per hour. The adult rate will rise from £4.50 to £4.
05 September 2014
Green Party Calls For £10 Minimum Wage
The Green Party is calling for a £10 minimum wage for everyone by 2020. The party believes every worker over the age of 16 should be paid at least the minimum wage and would abolish the age-based differential rates currently in place. Raising the minimum wage to living wage levels would benefit an estimated 5.
06 April 2006
Possible refunds for holiday camp staff
Staff working for holiday camps such as Butlins could be refunded pay after they were charged for electricity in their accommodation. The GMB union said that around 20,000 employees, working for Butlins, Haven Holidays and British Holiday in 50 camps across the UK might be eligible for refunds.
01 September 2011
Commission On Minimum Wage Visit
Two Low Pay Commissioners are to visit London next week on a fact-finding visit about the National Minimum Wage. The visit is one of a number of planned trips the Low Pay Commission is making around the UK during 2011 to "gather information on how the minimum wage is operating".
20 March 2006
Minimum wage to rise in October
The national minimum wage is set to increase from £5.05 to £5.35 per hour for adults from October. The rate for workers aged between 18 - 21 will increase from £4.25 to £4.45, while workers aged 16 and 17 will see their hourly rate increase from £3 to £3.30. The rises will guarantee higher pay for around 1.3 million workers.