Minimum wage to rise by 20p to £6.70 per hour – the biggest since 2008
More than 1.4m low paid workers will get a pay rise of three per cent in October, when the national minimum wage will increase to £6.70 an hour.
The move, to be confirmed in the Budget tomorrow, will ensure the biggest inflation-plus increase since 2008. Inflation is currently running at 1.1 per cent. Ministers hope the generous rise will help to generate a “feelgood factor” before the May general election.
The rise, from the current £6.50 an hour, was recommended last month by the independent Low Pay Commission. But the Government has angered business by approving a 20 per cent increase in the minimum rate for apprentices, which will go up from £2.73 to £3.30 an hour. The commission had proposed only a 2.6 per cent rise to £2.80 an hour.
Minimum pay for 18 to 20-year-olds will go up by three per cent to £5.30 an hour in October, while 16 to 17-year-olds in work will get a two per cent increase to £3.87 an hour.
David Cameron said the move showed the Government is on the side of hardworking taxpayers. “It will mean more financial security for Britain’s families; and a better future for our country,” he said.
Nick Clegg, the Deputy [...]