The Government has settled on the rates of National Minimum Wage, as proposed by the Independent Low Pay Commission, to come into effect on 1 October 2013.
The announcement had been delayed for a month, prompting speculation that the Government might freeze the rates but Business Secretary Vince Cable said that he was confident that the increases struck the right balance.
In a similar vein the CBI welcomed the “careful balance” that had been struck; the TUC was more reserved, noting that it would have liked to have seen a higher increase, but focused more on ensuring that there is proper enforcement of the NMW rates.
However Adam Marshall, director of policy at the British Chambers of Commerce was disappointed with what he pointed out were increases averaging 1.9%:
While the pressures of inflation are affecting many people, including the lowest-paid, the scale of this rise adds significantly to business costs, most of all by contributing to broader pay inflation. It will also make some employers less inclined to hire additional members of staff.
The new rates are as follows:
- £6.31 per hour adult rate (increase of 12p);
- £5.03 per hour rate for 18-20 year olds (increase of 5p);
- £3.72 per hour rate for 16-17 year olds (increase of 4p);
- £2.68 per hour apprentice rate (increase of 3p);
- £4.91 per hour accommodation offset (increase of 9p).