The UK Government announced this week that the National Minimum Wage will increase by 3% from £6.50 to a new rate of £6.70 per hour, effective from 1 October 2015. This is the largest real-terms increase in the National Minimum Wage since 2008, and over 1.4 million of Britain’s lowest-paid workers are set to benefit.
The Prime Minister and the Deputy Prime Minister have also announced the National Minimum Wage for 18 to 20 year olds will increase by 3% from £5.13 to £5.30 per hour, and that the National Minimum Wage for apprentices will increase by 57p an hour to £3.30. This is the largest ever increase in the National Minimum Wage for apprentices and will halve the gap with the National Minimum Wage rate for 16 to 17 year olds, which will be £3.87 an hour from October 2015. The government will also launch a consultation with businesses on the future of the National Minimum Wage rate for apprentices.
Prime Minister David Cameron said:
At the heart of our long-term economic plan for Britain is a simple idea – that those who put in, should get out; that hard work is really rewarded; that the benefits of recovery are truly national. That’s what today’s announcement is all about – saying to hardworking taxpayers, this is a government that is on your side. It will mean more financial security for Britain’s families; and a better future for our country.
Deputy Prime Minister Nick Clegg said:
This is just one of the many ways in which we’ve created a fairer society whilst building a stronger economy. If you work hard, this government is behind you all the way. Whether you’re on low pay or starting your dream career through an apprenticeship, you will get more support to help you go further and faster.