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Government announces minimum wage rise

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Government announces minimum wage rise


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The government has announced that the national minimum wage will rise by 19p, a 3% rise.

Due to come in this October, the rise will bring the NMW to £6.50 an hour.

The increase is 1.1% higher than inflation, which is currently sat at 1.9%.

The rise will benefit 1,000,000 workers.

The rate for those aged 18-20 will rise by 10p, a 2% increase bringing it to £5.13 an hour, while those aged 16-17 will also see a 2% rise on their hourly rate, a 7p increase bringing it to £3.79 an hour.

Those in apprenticeships will see their pay rise to £2.73 an hour, after a 5p increase.

Announcing the increase, Business Secretary Vince Cable said: "The recommendations I have accepted today mean that low-paid workers will enjoy the biggest cash increase in their take-home pay since 2008."

However, the rise still leaves the NMW some way off the living wage - the hourly rate deemed sufficient for a decent standard of life. The living wage is currently set at £7.65 an hour (£8.80 in London).

A report this week showed that 94% of Londoners do not believe the NMW is enough to live on in the capital.


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