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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.
The figure will increase from £5.52, a rise of 3.8%, Mr Brown said at the start of Prime Minister's Questions. 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.
Mr Brown said that the amount had gone up by 60% since the policy was introduced by the government in 1999. The government said that one million people would benefit from the increase, two-thirds of whom would be women.
The government says more than a million workers benefited from the previous increase in minimum wage levels, which took effect in October 2007. Mr Brown said that the minimum wage had gone up by 60% since the policy was introduced by the government in 1999.
The hourly rate for 18 to 21-year-olds will increase from £4.60 to £4.77, while the statutory wage for 16 and 17-year-olds will go up from £3.40 to £3.53 an hour. The original level when the minimum wage was launched was £3.60 an hour. It was last increased in October 2007.
Two-thirds of those who will benefit from the increase are women. 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."
EnforcementEnforcement
The government also wants to crack down on those employers not paying the correct amount. 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."