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Minimum wage will rise to £5.73 | Minimum wage will rise to £5.73 |
(30 minutes later) | |
The national minimum wage will rise to £5.73 an hour in October, Prime Minister Gordon Brown has announced. | The national minimum wage will rise to £5.73 an hour in October, Prime Minister Gordon Brown has announced. |
It will rise by 3.8% from £5.52. For 18 to 21-year-olds the rate will be £4.77, up from £4.60, while 16 to 17-year-olds will get £3.53, up from £3.40. | |
The government said that one million people would benefit from the increase, two-thirds of whom would be women. | |
Mr Brown said that the minimum wage had gone up by 60% since the policy was introduced by the government in 1999. | |
The original level when the minimum wage was launched was £3.60 an hour. It was last increased in October 2007. | |
It makes a real difference to the lives of many of our lowest-paid workers and protects them from exploitation Business Secretary John Hutton | |
Business Secretary John Hutton said: "The national minimum wage remains one of the most important rights introduced by the Government in the last decade." | |
"Before it was introduced, some workers could expect to be paid as little as 35 pence an hour. Our legislation has ensured that can no longer happen. | |
"I am proud of the minimum wage. It makes a real difference to the lives of many of our lowest-paid workers and protects them from exploitation. It also creates a level playing field for business and boosts the economy." | |
Enforcement | Enforcement |
The government also wants to crack down on those employers not paying the correct amount, with the maximum penalty increased to an unlimited fine. | |
The TUC says 150,000 workers are still not paid the minimum | |
In December, the TUC said it believed 150,000 workers were still being paid less than the statutory minimum. | In December, the TUC said it believed 150,000 workers were still being paid less than the statutory minimum. |
Unions have long called for enforcement powers in this area to be strengthened. | Unions have long called for enforcement powers in this area to be strengthened. |
More than £27m in unpaid wages has been recovered on behalf of 80,000 workers since 1999. | More than £27m in unpaid wages has been recovered on behalf of 80,000 workers since 1999. |
TUC general secretary Brendan Barber welcomed the policy, saying both workers and law-abiding employers would benefit from the system being as robust as possible. | |
He also welcomed the latest increase in the minimum wage. | |
"The Low Pay Commission (LPC) was right to withstand pressure from business warning of economic trouble ahead," he said. | |
"The truth is that employers will be able to absorb these sensible increases without too much difficulty." |