More than a million workers will get a pay rise after the national minimum wages goes up by 20 pence an hour from today.
The new adult rate is £6.70 an hour, the statutory figure for 18 to 20-year-olds will be £5.30 (up from £5.13), the age for under-18s will go up by 8p to £3.87, while the apprenticeship rate will rise by 57p to £3.30.
Business Secretary Sajid Javid said: “As a one nation government we are making sure that every part of Britain benefits from our growing economy and today more than 1.4 million of Britain’s lowest-paid workers will be getting a well-deserved pay rise.”
“The increase for apprentices is the largest in history making sure that apprenticeships remain an attractive option for young people. While the National Minimum Wage will see the largest real-terms increase since 2007.”
By implementing a rate higher than the Low Pay Commission’s (LPC) recommendation apprenticeships will deliver a wage that is comparable to other choices for work.
The 3 per cent increase is the largest ever since 2006 and moves the NMW closer to the average wage than ever before. This means those working 40 hours a week will now have £1,185 more in their annual pay packets.
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However, the Trade Union Congress (TUC) General Secretary Frances O’Grady said:“Today’s increase in the national minimum wage is welcome but hardly cause for euphoria. It is hard to celebrate when many low-income families will see this and future gains wiped out by the Chancellor’s cuts to tax credits. And when under-25s will be excluded from the new supplement that comes in next April.
“Giving with one hand and taking more with the other is not the way to make work pay. Slashing vital in-work benefits will serve only to push more working households into poverty. We won’t have a recovery for the many by taking an axe to the welfare budget.”