The People Bulletin

National Minimum Wage rates increased from 1 October 2010, with the minimum rate for workers aged 21 and over rising to £5.93 an hour. A new minimum wage rate for apprentices is also now effective at £2.50 per hour.  The rises in each category are:

Low Pay Commission chairman David Norgrove said: “"We are pleased that the government has again accepted the Commission’s recommendations. The introduction of an apprentice rate marks an important extension to minimum wage protection across the UK.” Age UK[1] amd the Age and Employment Network[2] confirmed around 5,000 people over the age of 50 were taking apprenticeships including 400 in their 60s and 13 in their 70s.

A useful guide to entitlements, what counts as pay towards the NMW and enforcement measures that can be taken against employers who do not comply can be found on the HMRC website.[3]

Employing children

Employers need to be aware of what constitutes compulsory school age when employing younger workers.  This is explained on the Low Pay Commission website.[4] See also Laurence Dunn’s article ‘Under-age labour?’ in The People Bulletin, 8 October 2009.

Child benefit

The chancellor, George Osborne, has announced that child benefit will be scrapped. The cut, one of a number of benefit measures to reduce the UK’s structural debt of £109bn, will apply from 2013 to people on the 40% and 50% income tax rates. Osborne said it was "difficult but fair" and would raise around £1bn. Households where one individual earns over about £44,000 would be affected.  The move will hit 15% of UK households - around three million families - and will result in middle-class parents losing out to the tune of £1,055 a year if they have one child and almost £2,500 for three.

The effect this has on salary negotiations between employers and parents for roles at the higher rate tax threshold remains to be seen. 

[1] www.ageuk.org.uk

[2] www.taen.org.uk

[3] www.hmrc.gov.uk/paye/payroll/day-to-day/nmw.htm

[4] www.lowpay.gov.uk