National minimum wage to increase
18 May 2009
As of October the government will increase the statutory minimum wage by 7p from £5.73 to £5.80 an hour for those aged 22 and over.
18 to 21 years-olds will receive an extra 6p an hour, taking their minimum wage to £4.83 whilst the pay rate for 16 and 17 year-olds will increase 4p to £3.57.
The additional 7p represents a 1.2% increase on the hourly rates, even though inflation for April was 2.9%.
The Low Pay Commission (LPC) decided that an increase of more than 1.5% could risk hurting employers, but it was essential that some increase takes place.
LPC Chairman Chairman George Bain said: “These are very challenging times for the UK and unprecedented economic circumstances for the minimum wage.
"We believe that the our recommendations are appropriate for this economic climate. They reflect the need to protect low-paid workers’ jobs as well as their earnings.”
The compromise will go some way to supporting minimum-wage earners as the costs of everyday living go up.
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