Government Approves New £6.08 Minimum Wage Rate

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
• 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.

(BMcN/GK)