From October minimum hourly rate will increase to £6.70.
The Government has announced that the National Minimum Wage will rise by 20p, from £6.50 to £6.70 an hour.
It’s the largest real-terms increase to the rate since 2008 and is set to benefit 1.4 million workers from 1st October 2015.
Younger workers aged 18-20 will see a 17p rise, from £5.13 to £5.30 an hour, while those aged 16 to 17 will get an 8p boost, from £3.79 to £3.87 an hour.
The rate for apprentices is also going up and will increase by 57p, from £2.73 to £3.30 an hour. The rate applies to apprentices aged 16 to 18 and those aged 19 or over who are in their first year. All other apprentices are entitled to the National Minimum Wage for their age.
The Government has followed the recommendations set out by the Low Pay Commission (LPC) apart from when it comes to apprentices, going much further than the 7p-an-hour increase suggested.
[SPOTLIGHT]Prime Minister David Cameron said the changes showed taxpayers the government was on their side and would mean “more financial security” for Britain’s families and a “better future” for the nation.
Labour response
Labour has pledged that the minimum wage would rise to £8 an hour over the course of the next parliament should the party come to power in May.
Shadow Business Secretary Chuka Umunna said: "This 20p rise falls far short of the £7 minimum wage which George Osborne promised over a year ago. Ministers have misled working families who have been left worse off.
“Where under David Cameron we’ve seen the value of the minimum wage eroded, we need a recovery for working people.”
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