Minimum wage goes up

Money

The national minimum wage has today gone up by 21p an hour to £5.73 for adult workers.

The hourly rate for 18-22-year olds has also gone up from £4.60 to £4.77 per hour and for 16 and 17 year-olds by 13p to £3.53.

Businesses have been warned that they could face a hefty fine if they do not pay employees the increase, while workers Unions have called for a bigger increase as food and utility bills continue to rise.

The government has plans to introduce regulations that will impose a £5000 on any employer that does not pay workers at the minimum rate.

The increase in the wage and the new Employment Bill have been backed by Rochdale's Parliamentary Candidate Simon Danczuk.

He said: "I will fight for the rights of working people in Rochdale. When families are struggling with rising fuel, energy and food prices it is more important than ever to have a rising National Minimum Wage. To me it's pretty simple, if you believe in fairness, you should support the National Minimum Wage.

"I support our Labour Government’s Employment Bill which is going through Parliament. It will mean we can take even tougher action on rogue employers with serious cases going to a Crown Court.

"So the message is simple: Con workers in Rochdale and you will face tough action. There are no excuses not to pay the National Minimum Wage." 

A freedom of information request from the Rochdale Liberal Democrat office revealed that not a single prosecution has been brought against an employer for non-compliance with the minimum wage legislation since its introduction.

Rochdale MP and Liberal Democrat Shadow Works and Pensions Minister Paul Rowen said: "It’s the role of the Government alongside HMRC to make sure that employers suspected of not paying the minimum wage do so and I find it hard to believe that since 1999, there hasn’t been a single successful prosecution case across Greater Manchester. This is not on. There are undoubtedly many people across Greater Manchester that are not being paid the basic minimum wage and I believe the government should be doing more to find out and prosecute businesses that do not comply."

Paul added: "In view of rising prices in food, energy, water and travel it is vitally important, more than ever, that we make certain honest hardworking people get the minimum they deserve. I will be making sure the Employment Bill, that is currently before Parliament, sets out much clearer and tougher rules for employers that are underpaying workers. Substantial and automatic fines and the real possibility of cases going to court are a must."

Councillor Greg Couzens, Cabinet Member for Finance said: "These findings are astonishing. At a time when inequality is rising up the political agenda it again looks like the lowest paid workers are the most vulnerable. This cannot continue and I urge government to bring in tougher measures to makes sure the minimum wages is enforced across Rochdale and Greater Manchester."

The minimum wage was first introduced ten years ago, at a rate of £3.60 per hour.

Employers can offset £4.46 per day from any minimum wage workers if the business is providing them with living accommodation.