By Marcus Leach
The National Minimum Wage (NMW) will rise today (Monday) in accordance with the recommendations set out by the Low Pay Commission in its 2012 report.
The government announced in March that the minimum wage would rise by 11p. This 1.8% rise is slightly lower than the typical rise in earnings and the current rate of inflation, which represents the rising cost of living.
From October 2012:
· The adult rate will increase by 11 pence to £6.19 an hour
· The rate for 18-20 year olds will remain at £4.98 an hour
· The rate for 16-17 year olds will remain at £3.68 an hour
· The rate for apprentices will increase by 5 pence to £2.65 an hour and
· The accommodation offset will increase by 9 pence to £4.82 per day
The Government is committed to the NMW because of the protection it provides to low paid workers and the incentives it provides to work. Around 1 million of Britain’s lowest-paid workers will gain from these changes.
However, despite the changes the TUC union have said that they are not enough.
"While we are pleased that government has rejected the siren calls of some employers to freeze the minimum wage for adult workers and apprentices, these increases are still far below inflation and will leave the lowest paid facing a real terms cut," said the TUC.
"These new rates are a particular blow to younger people who will face the biggest hit on their living standards. There is no evidence that the minimum wage has had an adverse impact on young people's employment so it is hard to see the logic behind their pay freeze."