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National Minimum Wage increase
The announcement made by Prime Minister David Cameron and Deputy Prime Minister Nick Clegg follows a recommendation from the Low Pay Commission (LPC) and will result in a 20p increase per hour from £6.50 to £6.70 in the adult rate, a 17p increase from £5.13 to £ £5.30 in the rate for 18-20 year olds and an 8p increase in the rate for 16-17 year olds from £3.79 to £3.87.
Cameron celebrated the announcement stating that: " At the heart of our long-term economic plan for Britain is a simple idea – that those who put in, should get out; that hard work is really rewarded; that the benefits of recovery are truly national. That’s what today’s announcement is all about – saying to hardworking taxpayers, this is a government that is on your side. It will mean more financial security for Britain’s families; and a better future for our country."
The government has also announced an increase in pay for apprentices, with the hourly minimum wage increasing by 57p to £3.30, and have promised a future consultation with businesses on the future of the National Minimum Wage for apprentices. The increase is believed to be higher than the LPC recommendation of 7p, but remains lower than the £1 increase Business Secretary Vince Cable wanted.
Clegg said: "This is just one of the many ways in which we’ve created a fairer society whilst building a stronger economy. If you work hard, this government is behind you all the way. Whether you’re on low pay or starting your dream career through an apprenticeship, you will get more support to help you go further and faster."
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