12/05/2009

Minimum Wage Increases To £5.80 Per Hour

The national minimum wage is to increase by 7p to £5.80 per hour, the Government has announced today.

The rate for 18 to 21-year-olds is to rise by 6p to £4.83, while 16 and 17-year-olds will increase by 4p to £3.57.

Around one million people are to benefit from the increase, which will come into play in October, after the Government approved recommendations from the independent Low Pay Commission.

The change will come a year after the statutory hourly rate was increased by 21p an hour.

"The National Minimum Wage has been in place for 10 years and remains one of the most important rights for workers introduced in that time," Business Secretary Lord Mandelson said.

"The Low Pay Commission (LPC) has carefully examined the latest economic data before making their recommendations on the minimum wage rate, balancing the needs of workers and businesses in the current economic climate.

"The Government agrees with this assessment and has accepted the recommendations for these new rates to take effect in October."

The chairman of the LPC, George Bain, said: "These are very challenging times for the UK and unprecedented economic circumstances for the minimum wage.

"We believe that the Low Pay Commission's recommendations are appropriate for this economic climate. They reflect the need to protect low-paid workers' jobs as well as their earnings."

(JM/BMcC)

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