The People Bulletin

The government has announced that the UK minimum wage will rise by 7p to £5.80 an hour from 1 October 2009. At the same time the youth development rate will increase from £3.77 to £4.83 an hour and the minimum wage for 16 to 17 year-olds will increase from £3.53 to £3.57 an hour. And from October 2010, the adult statutory minimum rate applies to 21-year olds. At present their minimum wage is set, together with 18 to 20 year-olds at a lower rate.

The Low Pay Commission Report 2009 is downloadable from their site and the historical rates from 1 April 1999 (when the full rate was £3.60 an hour) can be viewed in a table on their home page. The body‘s role is to advise the government on the national minimum wage. George Bain, its chairman said:

‘These are very challenging times for the UK and unprecedented economic circumstances for the minimum wage…this was a difficult year for the Commission, but our evidence-based approach led to another unanimous report. I am delighted the government has again accepted our recommendations on the rates this year.’

It is possible that an apprentice minimum wage will be incorporated into the national minimum wage framework – this depends on the government’s response to this recommendation from the Commission.

The modest rise has been generally well received, despite business leaders calling for a freeze, something David Frost; director general of the British Chamber of Commerce said ‘would have been more help to business.’

Further downward pressure on pay is anticipated as a result of figures published by the Office for National Statistics on 10 May showed the rate of inflation as measured by the headline RPI fell to – 1.2% in April.

www.lowpay.gov.uk
www.statistics.gov.uk/glance/