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Increase in the National Minimum wage.
From October the National Minimum wage is to be increased by 3% to £6.70 per hour.
In addition the hourly rate for apprentices is set to rise 20% up to £3.30 per hour.
The increases follow the recommendations made by the Low Pay Commission who are an independent body that advise the government on wage issues, but the government has gone one step further and increased the rate for apprentices by substantially more.
The changes affect almost a million and a half workers and are the largest increase in real terms for seven years.
Comments regarding the announcements;
Labour have said that they will increase the national minimum wage to £8 over the course of the next government if they get in, and highlighted that the £6.70 is less than the government promised when they were elected.
Conservatives have said that hard working Britain is at the heart of the recovery.
The CBI generally welcomed the moves but were concerned that the increase in apprentice wage was more that suggested by the Low Pay Commission.
The TUC called for greater increases if we want to end in-work poverty.
The changes,
National Minimum Wage - £6.70 per hour
Statutory Minimum for 18-20 year olds - £5.13
Apprentices ages 16-18 and those over 19 but in their first year - £3.30
All other apprentices are entitled to the national minimum wage for their age.
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