Government approves New minimum wage rate
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Issued
07 April 2011
Department for Business, Innovation
and Skills (National)
The Government has today
accepted the independent Low Pay Commission’s (LPC) recommendations for
this year’s National Minimum Wage (NMW) rates.
The following rates will
come into effect on 1 October 2011:
- The adult rate will
increase by 15p to £6.08 an hour;
- The rate for 18-20 year
olds will increase by 6p to £4.98 an hour;
- The rate for 16-17 year
olds will increase by 4p to £3.68 an hour; and
- The rate for apprentices
will increase by 10p to £2.60 an hour.
Business Secretary Vince
Cable said:
"More than 890,000 of
Britain’s lowest-paid workers will gain from these changes. They are
appropriate - reflecting the current economic uncertainty while at the
same time protecting the UK’s lowest-paid workers. I would like to
thank the LPC for doing a good job in difficult circumstances."
Chairman of the LPC David
Norgrove said:
"We welcome the Government's
acceptance of our recommendations. The Commission was again unanimous,
despite all the economic uncertainties. We believe we have struck the
right balance between the needs of low-paid workers and the challenges
faced by businesses."
As announced in the Budget
the Government will invite the LPC in its next report to consider the
best way to give business greater clarity on future levels of the
National Minimum Wage, including consideration of two-year
recommendations. This could provide greater certainty for businesses,
reduce risks and help them plan employment and investment decisions.
Notes:
1. The Low Pay Commission was established following the
National Minimum Wage Act 1998 to advise the Government on the National
Minimum Wage. It is made up of representatives from all sides of
industry. For more details and copies of the report see – http://www.lowpay.gov.uk/
2. The LPC makes recommendations to the Government in its
annual report. This Government has accepted all of its recommendations,
which were as follows:
- We recommend that the adult rate of the National Minimum
Wage be increased by 15 pence to £6.08 an hour from 1 October 2011.
- We recommend that the Youth Development Rate be increased
by 6p to £4.98 an hour and that the 16-17 Year Old Rate be increased by
4p to £3.68 an hour from 1 October 2011.
- We recommend that the Apprentice Rate be increased by 10p
to £2.60 an hour from 1 October 2011.
- We recommend that the accommodation offset should increase
from £4.61 to £4.73 per day from 1 October 2011.
- We recommend that the commissioning policies of local
authorities and the NHS should reflect the actual costs of care
including the National Minimum Wage.
- We recommend that the Government takes steps to raise
awareness of the rules applying to payment of the National Minimum Wage
for those undertaking internships, all other forms of work experience,
and volunteering opportunities. In addition, we recommend that these
rules are effectively enforced by HMRC using its investigative powers.
About the Author
© Crown Copyright. Material taken from the BIS Department for Business, Innovation and Skills. Reproduced under the terms and conditions of the Click-Use Licence.
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Article Published/Sorted/Amended on Scopulus 2011-04-08 10:11:21 in Business Articles
