Minimum wage to rise from October

The main adult rate of the UK national minimum wage (NMW) will rise to £5.80 an hour from 1 October, it has been announced.

This week the Government approved the Low Pay Commission’s (LPC) proposal to increase the main rate by 7p, stating the move would benefit almost one million workers.

The statutory rate for 18 to 21-year-olds will increase by 6p to £4.83, while 16 and 17- year-olds are to receive a minimum of £3.57 – up from £3.53.

‘These are very challenging times for the UK and unprecedented economic circumstances for the minimum wage,’ commented the LPC’s chairman, George Bain.

‘We believe that the Low Pay Commission's recommendations are appropriate for this economic climate. They reflect the need to protect low-paid workers' jobs as well as their earnings.’

Despite calls to impose a freeze on the NMW, the move has been largely welcomed by business leaders.

John Cridland, Deputy Director General of the CBI, said: ‘This moderate increase recognises that many businesses are struggling, and helps protect jobs at a time of rising unemployment.

‘The inflation-busting rise some unions had called for would have hit firms hard and put many lower paid workers on the dole.’

The British Chambers of Commerce said it too was pleased with the ‘modest increase’, although maintained that a freeze on the minimum wage ‘would have been more help to business.’