But increase dwarfed by inflation
By Stephen Hunt, 22nd June 2010
The minimum wage for adults in the UK will increase to £5.93 in
October, a rise of 13p, or 2%, the government has announced.
The change is the result of a recommendation
by the Low Pay Commission which has been rubber-stamped by the
government.
Working adults are not the only beneficiaries of the increase -
21 year olds will now receive at least the full adult minimum wage,
whereas only people aged over 22 years were previously
eligible.
Also unveiled were smaller percentage increases to the minimum
wages for other age brackets - 18-20 year olds get 9p extra, while
16 and 17 year olds earning the minimum wage will enjoy 7p more.
Furthermore, a minimum wage for apprentices has also been
implemented.
The changes were well received by the TUC, it said: "The
minimum wage has been a great success, and if this announcement
means that this is an area that will see continuity rather than
change it will win wide support."
This is in spite of the percentage rise of 2% falling well below
that stipulated by the retail price index of inflation, an
indicator of pay rises, which for May was as high as 5.1%
Edward Davey, Minister for Employment Relations, claimed that
the rise "will strike a balance between helping the lowest paid
whilst at the same time not jeopardising their employment."
The rise in the national minimum wage was however incongruous
with the "London Living Wage", which rose by over a percent more to
£7.85. Mayor of London Boris Johnson underlined that the increase
was necessary to give people ample incentive to
work.
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