National Minimum Wage to rise to £6.50 an hour
13 Mar 2014
The Government has confirmed that the National Minimum Wage (NWM) will rise by 3% with effect from 1 October 2014, in line with the recommendations of the Low Pay Commission (LPC).
The rise in the main adult rate from £6.31 to £6.50 an hour represents the first above inflation increase of the NMW in six years.
Meanwhile, the NMW rate for 18-20 year olds will increase by 10p, to £5.13, while the rate for those aged 16-17 will rise by 7p to £3.79. The NMW rate for apprentices will see an increase of 5p, to reach £2.73 an hour.
Commenting on the announcement, LPC Chair David Norgrove said, ‘We believe that the economic recovery should allow an increase in the real value of the minimum wage. Our recommendation that the adult minimum wage should increase by 3% to £6.50 an hour is likely to increase its real value for the first time for at least five years'.
'At the same time it takes account of the pressure the minimum wage places on businesses particularly in the low-paying sectors and small firms.'
The LPC expects to recommend further progressive increases to the NMW as the economic improvement continues.