Independent body recommends minimum wage rise

The Low Pay Commission, the independent body that advises the government on the minimum wage, is recommending that the adult rate is increased by 3 percent, from 6.50 to 6.70 pounds an hour.

If the recommended hourly rate is approved it would be the biggest increase since 2008 and would be worth over 400 pounds to a full time worker. If the increase is accepted by the government the new rate would be applied from October.

In addition to the adult minimum wage increase, which applies to workers aged 21 and over, the LPC also recommends a 3.3 percent increase, from 5.13 to 5.30 pounds for 18 to 20-year-olds, along with a 2.2 percent increase to 3.87 pounds for 16 to 17-year-olds.

Commenting on the recommendation, David Norgrove, Chair of the LPC said: “Last year we were pleased to recommend the first real terms increase in the value of the minimum wage since the recession. We argued that the minimum wage had proved its worth over the course of the slowdown, increasing relative to earnings generally and protecting the low paid during the downturn in a way not seen before albeit, as with wages for all other workers, its real value fell.

“Sharp increases in the minimum wage would put jobs at risk – not least bearing in mind pressure on low-paying sectors and small firms. We do believe however that the continued recovery, and in particular the impressive growth in employment of the low paid, should this year allow a further increase in the real and relative value of the minimum wage.”