Minimum wage to increase by 11p an hour

Minimum wage to increase by 11p an hour

National Minimum Wage will increase by 11p an hour to £6.19 an hour in October.

The announcement was made today after the Government accepted the independent Low Pay Commission’s (LPC) recommendations for this year’s National Minimum Wage (NMW) rates. 

The following rates will come into effect on 1 October 2012: 

• The adult rate will increase by 11p 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 and
• The rate for apprentices will increase by 5p to £2.65 an hour. 

Business Secretary Vince Cable said: "I believe that the recommendations of the Low Pay Commission strike the right balance between pay and jobs, and have therefore accepted all the rate recommendations. The Low Pay Commission has done a good job in difficult circumstances.

“In these tough times freezing the youth rates has been a very hard decision - but raising the youth rates would have been of little value to young people if it meant it was harder for them to get a job in the long run.”

Chairman of the LPC, David Norgrove, said: “We welcome the Government's acceptance of our recommendations on the rates for the National Minimum Wage. The Commission was again unanimous, despite all the economic uncertainties and the different pressures on low-paid workers and businesses. We believe we have struck the right balance between the needs of these workers and the challenges faced by employers.”