NATIONAL MINIMUM WAGE
New minimum wage rates for October 2011 announced
The government has accepted the independent Low Pay Commission’s (LPC) recommendations for this year’s national minimum wage (NMW) rates.
The following rates will come into effect on 1 October 2011:
Adult rate increases by 15p to £6.08 an hour.
Rate for 18-20 year olds increases by 6p to £4.98 an hour.
Rate for 16-17 year olds increases by 4p to £3.68 an hour.
Rate for apprentices increases by 10p to £2.60 an hour.
Other LPC recommendations accepted by government include:
“We recommend that the accommodation offset should increase from £4.61 to £4.73 per day from 1 October 2011.”
“We recommend that the commissioning policies of local authorities and the NHS should reflect the actual costs of care including the national minimum wage.”
“We recommend that the government takes steps to raise awareness of the rules applying to payment of the national minimum wage for those undertaking internships, all other forms of work experience, and volunteering opportunities. In addition, we recommend that these rules are effectively enforced by HMRC using its investigative powers.”
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Future levels of NMW
As announced in the Budget 2011, the government will invite the LPC in its next report to consider the best way to give business greater clarity on future levels of the national minimum wage, including consideration of two-year recommendations. The Department for Business Innovation and Skills said: “This could provide greater certainty for businesses, reduce risks and help them plan employment and investment decisions.”
A final word
"More than 890,000 of Britain’s lowest-paid workers will gain from these changes. They are appropriate - reflecting the current economic uncertainty while at the same time protecting the UK’s lowest-paid workers. I would like to thank the LPC for doing a good job in difficult circumstances." - Vince Cable, Business Secretary.
"We welcome the government's acceptance of our recommendations. The Commission was again unanimous, despite all the economic uncertainties. We believe we have struck the right balance between the needs of low-paid workers and the challenges faced by businesses." - David Norgrove, Chairman of the LPC.
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.