The government has announced today that the national minimum wage for adults will increase by 15 pence from October 2011 to £6.08 an hour.
The increase, recommended by the independent Low Pay Commission (LPC), is the equivalent of an additional 2.5%, below the current rate of inflation.
At the same time, the rate for apprentices will rise by 10p per hour, whilst for 16-17 year-olds this increase will be 4p per hour, and 6p for 18-20 year-olds. According to Business Secretary Vince Cable, these changes would help more than 890,000 of Britain’s lowest-paid workers.
The complete changes to the National Minimum Wage are:
- Over-20s: up 15p (2.5%) to £6.08
- 18-20 year-olds: up 6p (1.2%) to £4.98
- 16-17 year-olds: up 4p (1.1%) to £3.68
- Apprentices: up 10p to (4%) £2.60
At a time when unemployment is on the increase, and many employees are finding opportunities for overtime and extra work hours being reduced, questions are being raised regarding the timing and appropriateness of this increase.
The British Chambers of Commerce (BCC) said the changes risked pricing young people out of work when youth unemployment was at a record high.
The change to the National Minimum Wage rates announced today is the wrong increase, at the wrong time
said the BCC’s David Kern
These changes will be a barrier to job creation, and ultimately economic recovery.
