VOL. NO: 56      DATE:
 

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AFRICAN ECHO BUSINESS NEWS
Complied by Cass Gilroy-Business Editor

Independent Low Pay Commission recommend new rate of £5.52 an hour


Rt. Hon. Alistair Darling, MP, speaking at The Royal Society

MORE THAN a million workers will benefit from a rise in the National Minimum Wage from £4.35 to £5.52 an hour from October, Alistair Darling Secretary of State for Trade and Industry has announced. He has accepted the level recommended by the independent Low Pay Commission which will also mean increases from £4.45 to £4.60 for 18-21 year olds, and from £3.30 to £3.40 for 16-17 year olds.

The announcement means that the minimum wage has gone up by almost 30% more than inflation since it was introduced in 1999, with the number of jobs increasing by almost 2 million in the same time.

Since October last year the minimum wage for adults, combined with Working Tax credits and other benefits, has guaranteed an income of at least £268 a week for families with one child and one full-time worker.

Secretary of State for Trade and Industry Alistair Darling said: "More than a million workers will benefit from this announcement. Only 10 years ago home workers could be paid as little as 35p an hour, cleaners £1.30 an hour and security guards £2.25 an hour. It's bad for families and just plain wrong.

"I am proud of the minimum wage, proud of how it is helping families and proud of the role it plays in the modern economy we are delivering." In January new measures came into force to back the minimum wage with tougher enforcement.

 

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