National Minimum Wage Increases to £6.31 in October 2013

National Minimum Wage 2013 - 6.31The National Minimum Wage adult rate will increase by 12 pence an hour to £6.31 in the Autumn…

The 18-to-20 year old rate will rise by 5 pence an hour to £5.03

Apprentice rates for the National Minimum wage will increase by 3 pence to £2.68 an hour.

These latest minimum wage rates were announced by the government yesterday and recommended by the Low Pay Commission (LPC). The LPC did however recommend a wage freeze for apprentices and the government increased the rate.

Inflation currently stands at 2.8% (CPI) and 3.2% (RPI) but the increase in the minimum wage rates is below the rate of inflation at 1.9%

David Norgrove, the Chair of the Low Pay Commission, said of the Government accepting its rates recommendations:

“We have as usual considered all the evidence we have gathered together with assessments of the prospects for the UK economy when making our recommendations this year. Although the economy is forecast to grow through 2013 and 2014, the pace is likely to be low and earnings increases still very restrained. We believe our recommendations for October 2013 balance the needs of low-paid workers against the challenges facing businesses, particularly small businesses.”

The Business Secretary, Vince Cable, said of the latest recommendations:

“We are accepting its recommendations for the adult and youth National Minimum Wage rate increases, which I am confident strikes this balance.”

With regards to his decision on the apprentice rate, Mr Cable added:

“Apprenticeships are at the heart of our goal to support a stronger economy, and so it is important to continue to make them attractive to young people. Therefore, I am not taking forward the LPC’s recommendation to freeze the apprenticeship rate due to non-compliance, but instead am raising it in line with the youth rates.”

The Business Secretary did express his concerns that not all employers were paying the minimum wage rates and finished by saying:

&lquo;However, there is worrying evidence that a significant number of employers are not paying apprentices the relevant minimum wage rate.”

&lquo;We are working on a series of tough new measures to ensure we tackle non-compliance issues across the board.”

In full, the following rates will come into effect on the 1st of October 2013:

  • Adult rate – £6.31 an hour (up 12p)
  • 18-20 year olds rate – £5.03 an hour (up 5p)
  • 16-17 year olds rate – £3.72 an hour (up 4p)
  • Apprentice rate – £2.68 an hour (up 3p)
  • Accommodation offset – £4.91 (increased by 9p)

For past levels of minimum pay see our article on historical rates.

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