Minimum wage increases to benefit 1 million
Close to one million UK workers will welcome a boost in earnings
this Saturday, October 1 when the national minimum wage (NMW)
increases by 15p to £6.08 per hour.
This 2.5% increase in the adult minimum wage (for workers aged
21 and over) should benefit the public finances by £230 million as
tax and national insurance rates increase and the benefits bill
falls, the Low Pay Commission (LPC) calculates.
Around 890,000 people will benefit from the increase, and
according TUC General Secretary Brendan Barber, this rise will
put extra cash in the pockets of the UK's lowest-paid workers, who
"can ill afford to have their pay squeezed by inflation".
"Cuts in public services and benefits are hitting the working
poor the hardest and this increase is not enough to protect them
from falling living standards," he added.
"The minimum wage has already helped hundreds of thousands of
families without causing significant job losses and its success has
shown that - despite much scare-mongering from some employers -
sensible labour market regulation is good for business.
The increases will also benefit 18 to 20-year-olds, whose hourly
NMW will rise from £4.92 to £4.98, and 16 to 17-year-olds, whose
rate increases from £3.64 to £3.68.
However, despite the boost and positive spin from Mr Barber,
critics have pointed out that at the current RPI rate of inflation
(5.2%), the lowest paid in society may still struggle to make end's
meet.