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Minimum wage rise and 20% pay rise for apprentices

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The national minimum wage is set to increase to £6.70 per hour in October, which will benefit over 1.4 million individuals in the UK.

Earlier today, Prime Minister David Cameron and Deputy Prime Minister Nick Clegg announced that the standard rate of minimum wage would rise by 3%, the largest increase since 2008. It is thought that around 1.2 million employees are currently receiving minimum wage, with a further 1.3 million receiving within 50p of it.

Minimum wage rise

The Low Pay Commission has also recommended that the minimum wage for apprentices should also rise by 2.6% to £2.80 per hour. However, the government have gone further and plan to increase it by 20% to £3.30. There will be also be increases for 18-20 year olds to £5.30, and 16-17 year olds to £3.87.

Changes to the minimum wage follow the Prime Minister’s insistence that businesses to share the fruits of the recovery. Meanwhile, London Mayer, Boris Johnson, is encouraging a further boost in wages to be the ‘guiding Conservative economic mission’ in the next parliament.

‘Hard work is rewarded’

David Cameron has stated: “At the heart of our long-term economic plan for Britain is a simple idea … that hard work is really rewarded, that the benefits of recovery are truly national. That’s what today’s announcement is all about – saying to hardworking taxpayers, this is a Government that is on your side. It will mean more financial security for Britain’s families; and a better future for our country.”

Nick Clegg then continued: “this is just one of the many ways in which we’ve created a fairer society whilst building a stronger economy. If you work hard, this government is behind you all the way. Whether you’re on low pay or starting your dream career through an apprenticeship, you will get more support to help you go further and faster.”

Criticism

John Cridland, CBI Director-General, has said: “It’s disappointing that the Government has rejected the Low Pay Commission’s recommendation on the apprentice rate. The national minimum wage has been one of the most successful policies of recent years thanks to the independence of the commission – its politicisation is worrying.”

Meanwhile, Labour’s shadow business secretary Chuka Umunna, said:

“This 20p rise falls far short of the £7 minimum wage which George Osborne promised over a year ago. Ministers have misled working families who have been left worse off. Where under David Cameron we’ve seen the value of the minimum wage eroded, we need a recovery for working people. Only Labour has set a more ambitious target for the minimum wage which would see a rise to £8 by 2020, restoring the link between hard work and pay. We would also act to ensure the national minimum wage is properly enforced where a Tory-led government has failed to get to grips with non-payment. Currently 15 per cent of apprentices are not being paid the legal minimum, rising to almost a quarter for 16- to 18-year-olds.’

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About Siobhan Harmer

About Siobhan Harmer

Siobhan Harmer is an English Freelance writer who drinks far too much coffee!!

Website: Siobhan Harmer

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