The Government
has today accepted the independent Low Pay Commission’s (LPC)
recommendations for this year’s National Minimum Wage (NMW) rates.
The following rates will come into effect on 1 October 2011:
The adult rate will increase by 15p to £6.08 an hour;The rate
for 18-20 year olds will increase by 6p to £4.98 an hour;The rate
for 16-17 year olds will increase by 4p to £3.68 an hour; andThe
rate for apprentices will increase by 10p to £2.60 an hour.
Business Secretary Vince Cable said:
"More than 890,000 of Britain’s lowest-paid workers will
gain from these changes. They are appropriate - reflecting the
current economic uncertainty while at the same time protecting the
UK’s lowest-paid workers. I would like to thank the LPC for doing
a good job in difficult circumstances."
Chairman of the LPC David Norgrove said:
"We welcome the Government's acceptance of our
recommendations. The Commission was again unanimous, despite all
the economic uncertainties. We believe we have struck the right
balance between the needs of low-paid workers and the challenges
faced by businesses."
As announced in the Budget the Government will invite the LPC in
its next report to consider the best way to give business greater
clarity on future levels of the National Minimum Wage, including
consideration of two-year recommendations. This could provide
greater certainty for businesses, reduce risks and help them plan
employment and investment decisions.
Notes to editors:
1. The Low Pay Commission was established following the National
Minimum Wage Act 1998 to advise the Government on the National
Minimum Wage. It is made up of representatives from all sides of
industry. For more details and copies of the report see –
http://www.lowpay.gov.uk/
2. The LPC makes recommendations to the Government in its annual
report. This Government has accepted all of its recommendations,
which were as follows:
We recommend that the adult rate of the National Minimum Wage be
increased by 15 pence to £6.08 an hour from 1 October 2011.We
recommend that the Youth Development Rate be increased by 6p to
£4.98 an hour and that the 16-17 Year Old Rate be increased by 4p
to £3.68 an hour from 1 October 2011.We recommend that the
Apprentice Rate be increased by 10p to £2.60 an hour from 1
October 2011.We recommend that the accommodation offset should
increase from £4.61 to £4.73 per day from 1 October 2011.We
recommend that the commissioning policies of local authorities and
the NHS should reflect the actual costs of care including the
National Minimum Wage.We recommend that the Government takes steps
to raise awareness of the rules applying to payment of the
National Minimum Wage for those undertaking internships, all other
forms of work experience, and volunteering opportunities. In
addition, we recommend that these rules are effectively enforced
by HMRC using its investigative powers.
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