… national minimum wage goes up by 20 pence today
From today, the apprentice rate of the National Minimum Wage (NMW) goes up by 57 pence to £3.30 and the NMW rate for adult workers will rise by 20 pence from £6.50 to £6.70 per hour.
The boost for apprentices is the largest ever and means that those working 40 hours a week will now have £1,185 more in their pay packet over the year, the government says.
By implementing a rate higher than the Low Pay Commission’s (LPC) recommendation apprenticeships will deliver a wage that is comparable to other choices for work.
The 3% increase in the adult rate is the biggest real increase since 2006 and moves the NMW closer to the average wage than ever before. The new rate means that a full time employee, working 40 hours, will see the largest cash increase in their annual pay packets since 2008.
Business Secretary Sajid Javid said: “As a one nation government we are making sure that every part of Britain benefits from our growing economy and today more than 1.4 million of Britain’s lowest-paid workers will be getting a well-deserved pay rise.
The increase for apprentices is the largest in history making sure that apprenticeships remain an attractive option for young people. While the National Minimum Wage will see the largest real-terms increase since 2007.
From 1 October 2015:
- the adult rate will increase by 20 pence to £6.70 per hour
- the rate for 18 to 20 year olds will increase by 17 pence to £5.30 per hour
- the rate for 16 to 17 year olds will increase by 8 pence to £3.87 per hour
- the apprentice rate will increase by 57 pence to £3.30 per hour
- the accommodation offset increases from the current £5.08 to £5.35
The GMB trade union welcomes the additional 20p on National Minimum Wage for 1.4 million workers but said that £6.70 per hour is NOT a living wage.
On tax credit cuts from April 2016 for 2.62 million workers the minimum loss will £23.72 per week and the average loss will be £34 per week for 3.3 million working families, the union says.
Paul Kenny, GMB General Secretary, said: “The additional 20p per hour for 1.4 million lower paid workers is welcome but as the Chancellor recognized £6.70 per hour is not a living wage. Employers like NEXT who can afford to pay a living wage should do so without delay.
“The Government must also step up enforcement and enable trades unions and local councils to contact HMRC to report employers who are not paying the rate.
“These same workers and their families face a serious loss of income from 1st April 2016 when tax credits are cut. GMB assess that for 2.62 million the minimum loss will £23.72 per week and that over time that the average loss will be about £34 per week for 3.3 million working families.
“For the huge numbers of working families that will be hit by cuts in tax credits the answer is simple – they should join a union to fight for better pay from employers who can well afford it as Osborne confirmed. “
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