National Minimum Wage increases have been announced resulting in a 3% increase for adult workers. This is the largest real-term rise in seven years. Normally the Government accepts the recommendations by the Low Pay Commission but this year the Government has decided to go one step further.
Other rises include the statutory minimum for 18 to 20-year-olds which is to increase by 3% from October 2015, from £5.13 to £5.30, and by 2% for 16 and 17-year-olds, taking the rate to £3.87.
Interestingly, the Government has rejected the commission's proposed 7p an hour increase in the apprenticeship rate (rate applying to apprentices aged 16-18 and those aged 19 years who are in their first year) , choosing instead to increase it by 57p an hour.
The national minimum wage will increase by 20p an hour to £6.70 from October, the government has announced. The changes will benefit more than 1.4 million workers. The hourly rate for younger workers will also rise, and for apprentices it will go up by 20% - or 57p - to £3.30 an hour. The rates were recommended by the Low Pay Commission but the government has gone further than the 7p an hour increase suggested for apprentices. Prime Minister David Cameron said the across-the-board increases would offer "more financial security" to workers. Labour said the minimum wage had been "eroded" since 2010 while unions said the increases would not address "in-work poverty". The 3% increase in the national minimum wage for adult workers is the biggest real-terms rise in seven years.