Minimum Wage to Rise to £6.50

The National Minimum Wage will rise by 19p to £6.50 in October, the government has confirmed.

The Low Pay Commission (LPC) welcomed the government’s acceptance of its recommendations, with the Chair of the LPC, David Norgrove, saying:

“We believe that the economic recovery should allow an increase in the real value of the minimum wage. Our recommendation that the adult minimum wage should increase by 3% to £6.50 an hour is likely to increase its real value for the first time for at least five years.

At the same time it takes account of the pressure the minimum wage places on businesses, particularly in the low-paying sectors and small firms.”

Business Secretary Vince Cable said: “The recommendations I have accepted today mean that low-paid workers will enjoy the biggest cash increase in their take home pay since 2008. This will benefit over one million workers on National Minimum Wage and marks the start of a welcome new phase in minimum wage policy.”

The Forum of Private Business welcomed the announcement. Chief Executive Phil Orford commented:

“Striking a balance between employee demands and employer needs is a tricky one but we think the Low Pay Commission struck a fair balance.

“We are pleased the government has followed their proposed increase rather than raising the NMW much more dramatically. In the context of many rising costs for business, it was important that wages do not become an overbearing burden as business seek to invest and grow in the current, improved economic climate. Everyone will benefit from this ability further down the line.”

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