Minimum wage to rise in real terms for first time since 2008
THE MINIMUM wage will be increased by three per cent to £6.50 an hour in October this year, Vince Cable announced yesterday.
The business secretary confirmed that the government will accept the Low Pay Commission’s (LPC) recommendations, which also include larger increases over the next couple of years. It is the first real terms cash increase since 2008.
“Low-paid workers will enjoy the biggest cash increase in their take home pay since 2008,” Cable said. He also sought to reassure business leaders, who warned of job losses if the rate is increased too quickly, adding: “The LPC’s new forward guidance gives us a much better understanding of how an economic recovery can be translated into faster and significant increases in the National Minimum Wage for low paid workers, without costing jobs.”
The adult rate will be increased from £6.31 to £6.50 per hour while 18-20 year olds will see their pay increase from £5.03 to £5.13.