Minimum Wage Increase

by Katy Murcutt - Paralegal

26 July 2010, filed under Employment

The national minimum wage will increase from 1st October 2010 to the following rates:

 Adults (aged 21 years or above) wage shall increase to £5.93 per hour from £5.80
 Youths (aged 18-20 years) wage shall increase to £4.92 from £4.83 per hour; and
 16-17 years olds shall receive a minimum of £3.64 per hour in comparison to the current £3.57

In addition to the minimum wage increase for each age band, a basic apprenticeship wage of £2.50 per hour shall apply those either under 19 years of age or those whom are 19 years old or more but are in their first year of an apprenticeship. This is a new rule for 2010 as under current legislation apprentices are not entitled to a minimum wage.

The Low Pay Commission (LPC) consists of trade union representatives and employers. The LPC held meetings to consider the requirements for employers and employees alike to ensure that the welfare of the economy was not neglected or over stretched in light of the current economic climate.

Many campaigners for low paid workers have welcomed the minimum wage increase as it offers current employees a pay rise in these difficult times, especially to those who have their working hours slashed or who have suffered a large pay cut due to the recession in order for the company to be able to keep jobs available.

The introduction of the apprenticeship minimum wage has been brought in under the legal framework of the minimum wage so that it is easier to administer and enforce.

Although the UK is arguably on the right tracks for economic recovery, the speed and potency of that recovery still remains to be made clear. The lack of job security has arguably left millions affected and vulnerable in what was once a secure and highly prosperous marketplace.

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