Proposal for 3% minimum wage increase
27 Feb 2014
The Low Pay Commission (LPC) has recommended an increase in the national minimum wage to £6.50 per hour for adults.
Given recent reports of economic recovery, it is thought possible that the UK can support a higher wage. If the proposal is accepted it will be the first increase, in real terms, for five years.
David Norgrove, Chair of the LPC, said: 'We have had to balance the risk of recommending more than business and the economy can afford, bearing in mind the pressures on low-paying sectors and small firms, against the risk of doing too little to start to restore the real value of the earnings of the lowest paid'.
Shadow business secretary, Chuka Umunna MP, was pleased with the recommendations, commenting: 'Labour said last year that we need to see above-inflation rises in the minimum wage to restore the value lost over recent years'.
Organisations such as the Engineering Employers' Federation, the Confederation of British Industry and the Forum for Private Business all welcomed the recommendations.