NATIONAL MINIMUM WAGE
Government freezes minimum wage for under-21s
The government has today accepted the independent Low Pay Commission’s (LPC) recommendations for this year’s national minimum wage 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.
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.”
Chair 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.”
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Other LPC recommendations
The government has also accepted the following recommendations:
The accommodation offset should be increased by 9 pence to £4.82 per day from 1 October 2012.
In order to make operating the NMW as simple as possible for all users, the government puts in place, and maintains, effective, clear and accessible guidance on all aspects of the minimum wage particularly where there is significant evidence of ignorance or infringing practice. As a first step, the government should undertake a review of all existing guidance.
The government has noted the following recommendations:
The government should not only have a process for naming infringers but should also make frequent use of it. The government should also actively seek other publicity opportunities which will help to signal that those who infringe the NMW get caught and punished.
The government should more actively communicate both the rates themselves and rights and obligations under the NMW. Communication activities about the minimum wage should not be subject to the government’s marketing freeze.
Want to know more?
Department for Business Innovation and Skills: You can download details of the announcement of the latest hike in the minimum wage by accessing the BIS web site.
Web: www.berr.gov.uk/Policies/employment-matters/rights/nmw.
Directgov: This government site provides an easy-to-use guide to UK employment law, including minimum wage regulations.
Web: www.directgov.gov.uk.
Low Pay Commission: The LPC was established as a result of the National Minimum Wage Act 1998 to advise the government about the national minimum wage.
Web: www.lowpay.gov.uk.