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Government approves new minimum wage

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
* The rate for apprentices will increase by 10p to £2.60 an hour

“More than 890,000 of Britain’s lowest-paid workers will gain from these changes,” comments Business Secretary Vince Cable. “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 says the right balance has been struck 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 two-year recommendations). This could provide greater certainty for businesses, reduce risks and help them plan employment and investment decisions.

For more details and copies of the report, click here.

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