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| Minimum wage up to £5.80 an hour | Minimum wage up to £5.80 an hour |
| (10 minutes later) | |
| The UK minimum wage will rise by 7p to £5.80 an hour from October, the government has announced. | |
| The rate for 18 to 21-year-olds will increase by 6p to £4.83 and for 16 and 17-year-olds will go up by 4p to £3.57. | The rate for 18 to 21-year-olds will increase by 6p to £4.83 and for 16 and 17-year-olds will go up by 4p to £3.57. |
| The change will come a year after the statutory hourly rate was increased by 21p an hour. | The change will come a year after the statutory hourly rate was increased by 21p an hour. |
| Business leaders had recently called for the minimum wage to be left at the current levels in 2009 amid the economic downturn. | Business leaders had recently called for the minimum wage to be left at the current levels in 2009 amid the economic downturn. |
| The British Chambers of Commerce (BCC) said in December that it believed the minimum wage should not be increased until economic situations had significantly improved. | |
| The government said that nearly one million people would benefit from October's increase. | |
| Review | |
| "The Low Pay Commission (LPC) has carefully examined the latest economic data before making their recommendations on the minimum wage rate, balancing the needs of workers and businesses in the current economic climate," said Business Secretary Lord Mandelson. | |
| "The government agrees with this assessment and has accepted the recommendations for these new rates to take effect in October." | |
| The chairman of the LPC, George Bain, said: "These are very challenging times for the UK and unprecedented economic circumstances for the minimum wage. | |
| "We believe that the Low Pay Commission's recommendations are appropriate for this economic climate. They reflect the need to protect low-paid workers' jobs as well as their earnings." |