More than a million workers set to benefit from minimum wage increase

And there’s a big boost for apprentices too

The National Minimum Wage is set to increase by 20p to £6.70 from October.

More than 1.4 million workers will benefit from the rise, including apprentices, who will see their pay go up by a huge 20% to £3.30 an hour.

The government has increased apprentices’ pay by 7p more than the recommendation of the Low Pay Commission.

David Cameron said: “At the heart of our long-term economic plan for Britain is a simple idea - that those who put in, should get out, 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.”

However, Labour criticised the move, saying the increase wasn’t enough.

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.”

The CBI was also critical - but becasue director-general John Cridland thought it was too much. He said the extra boost to the apprentice rate was “disappointing”.

He said: “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.

“Employers must be in the driving seat when it comes to apprenticeship funding, so we welcome the announcement of the voucher system but await further details.”

 


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Readers' comments (1)


  • The Minimum Wage is below the Living Wage calculated by the Joseph Rowntree Foundation.

    Therefore people on Minimum Wage have to claim benefits in order to live.

    This amounts to a State subsidy for low wage payments, allowing businesses to inflate their profits at the taxpayer's expense.

    The Minimum Wage should be raised to the Living Wage, and the Government should subsidise smaller businesses that cannot afford it.

    This would be a more transparent and honest subsidy, means-tested to the businesses that need it.

    At the moment, larger employers benefit disproportionately from this invisible subsidy.

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