The national minimum wage is to increase to £6.70 an hour for all workers over 21. The increase represents a 20p increase, the biggest rise in seven years.
The move, which was announced by the government in The Budget is expected to benefit 1.3 million workers, with the 3% rise affecting the lowest paid in the UK. The rise is expected to come into place from October.
Increase For All Sections
The hourly rate for 18- to 20-year-olds will also increase from £5.13 to £5.30, an increase of 3%, and by 8p to £3.87 for 16 and 17-year-olds.
Apprentices also benefitted from the new proposals with the biggest increase ever recorded. The minimum wage for apprentices rose by 57p to £3.30, an increase of 20%. Such a move went beyond the recommendations of the Low Pay Commission, who propose such changes.
Criticism
Despite the increase in the wage the move was criticised by some for falling below the suggested living wage, with others speaking out against the politicisation of the national minimum wage.
The CBI Director General, John Cridland, said: “It’s positive that the government has accepted the independent Low Pay Commission’s recommendations on the adult and youth rates. The Commission struck a careful balance, helping many low-paid workers without damaging their job prospects.”
“The national minimum wage has been one of the most successful policies of recent years, thanks to the independence of the commission – its politicisation is worrying.”
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