Minimum wage to rise

The coalition government has accepted the recommendations of the Low Pay Commission on the new rates for the National Minimum Wage (NMW) from October.

The main rate, which had been agreed by last Labour government in March, will rise by 2.2% to £5.93 an hour (see FS13 for other rates).

In addition, the government has written to the commission outlining and extending its remit for its 2011 report, which will advise the government on what the NMW should be from October next year.

As in previous years, the commission will monitor and evaluate the NMW and its impact, but this year it has been asked to pay particular attention to its implications on the competitiveness of small firms and the employment prospects of young people.

TUC general secretary Brendan Barber, welcoming the decision, said: “The minimum wage has been a great success, and if this announcement means that this is an area that will see continuity rather than change it will win wide support.”

www.lowpay.gov.uk/

www.tuc.org.uk/newsroom/tuc-18120-f0.cfm