The Low Pay
Commission today welcomed the Government's confirmation
that from October 2011 the National Minimum Wage will increase in
line with its recommendations.
From 1 October 2011, the adult minimum wage rate will increase
from £5.93 to £6.08 an hour, the Youth Development Rate will rise
from £4.92 to £4.98 an hour and the 16-17 Year Old Rate will
increase from £3.64 to £3.68 an hour. The Apprentice Rate will
also increase from £2.50 to £2.60 an hour.
The Chair of the Low Pay Commission, David Norgrove said:
"Our recommendations this year are, as ever, based on
sound economic evidence and take account of the prospects for the
UK economy. The UK economy is forecast to grow, but the pace is
uncertain. We believe our recommendations are appropriate and
balance the needs of low-paid workers and the challenges faced by
businesses.
"The position of young people in the labour market
continues to be of concern. Their employment prospects have
suffered more than adults. We recommended a lower increase for
young people in order to help protect their labour market position.
"We received evidence this year which indicated a number
of employers were ignoring minimum wage rules with regard to
internships and some other forms of work experience. We believe
raising awareness of the minimum wage rules and more effective
enforcement are the best ways to tackle this misuse.
"Our recommendations have the unanimous support of
Commissioners and we are pleased that the Government has accepted
them".
Notes to Editors
1. The Low Pay Commission is a statutory body whose role is to
advise the Government on the National Minimum Wage.
2. The Low Pay Commission submitted its report to the Government
on 25 February 2011, in accordance with its remit. The Government
published and responded to this report on 7 April 2011.
3. The 2011 Report is the Commission's twelfth report.
All reports are available from the Stationery Office Bookshops or
the Commission's website at: http://www.lowpay.gov.uk.
4. The members of the Low Pay Commission are:
David Norgrove
(Chair), Chair of the Family Justice Review Panel and Trustee of
the British Museum; Susan Anderson, Director of Public Services
and Skills at the CBI; Professor Bob Elliott, Professor of
Economics and Director of the Health Economics Research Unit at
the University of Aberdeen; Neil Goulden, Chairman (emeritus) of
the Gala Coral Group; John Hannett, General Secretary of the Union
of Shop, Distributive and Allied Workers; Peter Donaldson,
Managing Director of D5 Consulting Ltd; Professor Stephen Machin,
Professor of Economics at University College London and Research
Director, Centre for Economic Performance, London School of
Economics; Frances O'Grady, TUC Deputy General Secretary
and Heather Wakefield, National Secretary for UNISON's
Local Government Service Group.
5. A full list of this year's recommendations follows.
The Government accepted all of the recommendations.
National Minimum Wage Rates
We recommend that the adult rate
of the minimum wage rate be increased by 15 pence to £6.08 per
hour from October 2011 (para 5.61).
We recommend that the Youth Development Rate be increased by 6
pence to £4.98 an hour and that the 16-17 Year Old Rate be
increased by 4 pence to £6.68 from October 2011 (para 5.64).
Apprentices We recommend the apprentice wage
should increase by 10 pence an hour to £2.60 per hour from October
2011 (para 5.66).
Accommodation Offset We recommend that the
accommodation offset should increase from £4.61 to £4.73 per day
from October 2011 (para 5.62).
Social Care We recommend that the
commissioning policies of local authorities and the NHS should
reflect the actual costs of care, including the National Minimum
Wage (papa 2.74).
Compliance 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 (para 4.38).
Low Pay Commission
6th floor
Victoria
House
Southampton Row
London WC1B 4AD
Tel. 020 7271
0451
Web: http://www.lowpay.gov.uk
Contacts:
NDS Enquiries
Phone: For enquiries please contact the issuing dept
ndsenquiries@coi.gsi.gov.uk
Kim Brinkworth
Phone: 020 7271 0451
kim.brinkworth@lowpay.gov.uk