WIREDGOV

Commenting on the announcement by the government yesterday (Thursday) that it has accepted the recommendations of the Low Pay Commission (LPC) to increase the National Minimum Wage (NMW) from this October, TUC General Secretary Brendan Barber said:

'The increases in minimum wage rates show that the government understands the NMW must remain an important part of working life.

"These rises are relatively modest, but they will provide a welcome pay boost for around 840,000 low-paid workers in the UK.

'It is only fair that employers play their part in combating low pay, and the LPC has taken great care to ensure that the new rates are set at a level that will not damage job creation in these uncertain economic times.

'With research* suggesting that workers on the miniumum wage spend 100 per cent of their pay rises where they live or work, these increases should provide a modest stimulus to local economies.

'There will be room for much more generous increases in future years once the economy begins to recover. But the government also needs to address the issue of youth unemployment, which has led to the LPC recommending a smaller increase for younger workers this year."

NOTES TO EDITORS:

- NMW rates:

- *The Spending and Debt Response to Minimum Wage Hikes, Daniel Aaronson, Sumit Agarwal, and Eric French, Federal Bank of Chicago, December 2008, reveals that minimum wage workers spend 100 per cent of their pay rises locally.

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