Minimmum wage to rise to £6.31 in October

Mon, 15/04/2013 - 18:28 -- nick

The minimum wage is to rise to £6.31 from October, the government has confirmed.

The new rate will mean a rise of 12p per hour from the current rate of £6.19.

Business Secretary Vince Cable announced the change, and confirmed an increase of 5p in the minimum wage for 18-to-20-year-olds to £5.03.

The new rates were recommended by the Low Pay Commission, although Cable also revealed that apprentices would receive 3p more, £2.68 per hour, despite the Commission recommending no change.

Dr Adam Marshall, the director of policy for British Chambers of Commerce, said: "We are disappointed that the government has chosen to raise the adult national minimum wage rate by 1.9%, an increase that is over 50% higher than current average pay growth.

"While the pressures of inflation are affecting many people, including the lowest-paid, the scale of this rise adds significantly to business costs, most of all by contributing to broader pay inflation. It will also make some employers less inclined to hire additional members of staff."

All rises are below current inflation at 2.8% (CPI), meaning those earning the minimum wage will be able to buy less each month and unemployed people are likely to need more financial help if they are to be able to afford to take these jobs.

TUC general secretary Frances O'Grady said: "Boosting the incomes of the low-paid goes straight into the economy and wage-led growth must be part of the recovery, so we would have liked to have seen minimum wage rates go up further today, even if the government has rightly rejected calls for a freeze.

"But we are pleased that ministers have increased the apprenticeship rate. This sends a positive signal about the importance of apprentices."

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