National minimum wage to rise by 20 pence an hour

National minimum wage will increase by 20 pence an hour to 6 pounds 70 pence from October, the largest real-terms increase in the National Minimum Wage since 2008.

The announcement means a 3 percent increase for adults, benefiting more than 1.4 million workers across the UK, while minimum pay for 18 to 20-year-olds will go up to 5 pounds 30 pence an hour and 16 to 17-year-olds in work will get a two percent increase to 3 pounds 87 pence an hour. The statutory minimum has also increased for apprentices by 57 pence an hour to 3 pounds 30 pence.

The rates were recommended by the Low Pay Commission, the independent body that advises the government on the minimum wage, although the government is going further than the suggested figure of 2 pounds 80 pence 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 hard-working 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.”

Commenting on the government's announcement, shadow business secretary Chuka Umunna said “This 20p rise falls far short of the 7 pounds minimum wage which George Osborne promised over a year ago. Ministers have misled working families who have been left worse off.

“Where under David Cameron we’ve seen the value of the minimum wage eroded, we need a recovery for working people.”

Labour has promised that the minimum wage would rise to 8 pounds an hour over the course of the next parliament if it wins in May.