National Minimum Wage 2012 Rate Approved
The Government has today (Monday) accepted recommendations from the independent Low Pay Commission’s (LPC) for this year’s (2012) National Minimum Wage (NMW) rates.
The following National Minimum Wage rates will come into effect from the 1st of October 2012:
- The adult minimum wage rate will increase by 11p to £6.19 an hour
- The rate for 18-20 year olds will stay at £4.98 an hour
- The rate for 16-17 year olds will remain at £3.68 an hour and
- The rate for apprentices will increase by 5 pence to £2.65 an hour.
Business Secretary Vince Cable said:
“I believe that the recommendations of the Low Pay Commission strike the right balance between pay and jobs, and have therefore accepted all the rate recommendations. The Low Pay Commission has done a good job in difficult circumstances.”
“In these tough times freezing the youth rates has been a very hard decision – but raising the youth rates would have been of little value to young people if it meant it was harder for them to get a job in the long run.”
Chair of the Low Pay Commission, David Norgrove, said:
“We welcome the Government’s acceptance of our recommendations on the rates for the National Minimum Wage. The Commission was again unanimous, despite all the economic uncertainties and the different pressures on low-paid workers and businesses. We believe we have struck the right balance between the needs of these workers and the challenges faced by employers.”
John Cridland, Director-General of the Confederation of British Industry also commented, saying:
“Getting growth going must be the Chancellor’s number one priority in this year’s Budget. As we’ve said, one of the best ways we can create activity and new jobs is by attracting investment into our ageing infrastructure.”
“Congestion on our roads costs the UK economy up to £8 billion a year, so the Prime Minister’s ambition to get much-needed private investment into the strategic network could not have come at a better time. Every £1 spent on infrastructure adds £3 to the economy as a whole.”
“In the short-term, we need contracts to be agreed with companies to maintain our roads and repair the potholes. In the longer-term, investor confidence will be critical to injecting new money into removing bottlenecks, reducing commuting times and helping firms to transport their goods.”
It was also announced today that David Norgrove has been reappointed as Chair of the LPC.