Citizens Advice welcome minimum wage increase

The Government has accepted the recommendations from the Low Pay Commission to increase the National Minimum Wage.

From October the present rate for those 22 years and over will rise from £4.20 to £4.50 and for 18-21 years the £3.60 hourly rate will rise to £3.80.

Patricia Hewitt the Trade and Industry Secretary has indicated that she has provisionally accepted a recommendation for further increases in October 2004, increasing the rates to £4.85 and £4.10 respectively.

Joan Davis, NMW Information Officer said: "We welcome any increase in NMW rates, but the sad fact is that many workers in NI are still not receiving the Minimum Wage. It is our experience from operating the Helpline that workers continue to face difficulties accessing many employment rights, with employers choosing to ignore European legislation. We will continue to offer information and advice to enable workers to obtain their statutory rights."

Although Industry representatives once again warned of job losses, a survey by the London School of Economics concluded that the introduction of the National Minimum Wage in 1998 had only a ‘minimal’ impact on job losses. Overall the Unions were disappointed that the increase did not reach the much needed £5.00 per hour to bring Northern Ireland out of the low wage economy.

Derek Alcorn, Chief Executive of Citizens Advice said: "Although the increase is to be welcomed, we question the need for the differentiation in rates and the exclusion of 16 and 17-year-olds from this important statutory right. We need to focus on reducing poverty and improving employment practices in NI. Discriminating on the basis of age and perpetuating the low wage economy by introducing small incremental increases does not make a significant impact on the quality of life for low earners."

(MB)