New £5.93 minimum wage rate and new rate for apprentices

[TrueBlueTerrier]

New £5.93 minimum wage rate and new rate for apprentices announced

http://nds.coi.gov.uk/content/Detail.as ... :+bis-news+(BIS+News" onclick="window.open(this.href);return false;)


The Government has today confirmed that it has accepted the recommendations from the Low Pay Commission (LPC) on the new rates for the National Minimum Wage, as referred to in yesterday’s Budget.

The new rates, which will come into force on 1 October 2010 will be:

£5.93 per hour for low paid workers aged 21 and over (a 2.2% increase on the current £5.80 rate);
£4.92 per hour for 18-20 year olds (a 1.9% increase on the current £4.83 rate); and
£3.64 per hour for 16-17 year olds (a 2% increase on the current £3.57 rate.
The Government also announced that it had accepted the LPC’s recommendation to introduce an apprentice minimum wage of £2.50 per hour. The new rate will apply to those apprentices who are under 19 or those that are aged 19 and over but in the first year of their apprenticeship.

Business Minister Pat McFadden:

“Since the National Minimum Wage was introduced millions of low paid workers across the country have benefited by having their wages increased.

“The Low Pay Commission, which includes employers and Trade Union representatives, carefully considered the latest economic data and evidence before making its recommendations, balancing the needs of businesses and workers.

“Today’s recommendations provide a welcome increase for workers, but the economy is still fragile and government must continue to support the recovery in the months ahead.

“I’m also glad to see the LPC recognising the significant contribution that apprentices make to the economy. I hope this will encourage more people to take advantage of this opportunity and invest in their skills by taking up an apprenticeship.”

Low Pay Commission Chairman David Norgrove said:


“We are pleased that the Government has again accepted the Commission’s recommendations. The introduction of an apprentice rate marks an important extension to minimum wage protection across the UK.”

The Government also published its strategy for ensuring compliance with National Minimum Wage legislation over the next three to five years.

The strategy builds on the last 10 years and sets out the Government’s priorities for ensuring that workers receive the wages they are entitled to.


- ENDS-

Notes for editors

1. The Low Pay Commission was established following the National Minimum Wage Act 1998 to advise the Government about the National Minimum Wage. Its commissioners include representatives from business groups, trades unions and academics. For more details, and copies of the full report, see http://www.lowpay.gov.uk/" onclick="window.open(this.href);return false;

2. When the minimum wage was launched in 1999, the main rate was £3.60.

3. The LPC makes recommendations to the Government in its annual report. In addition to the rate increases, the Government has accepted the recommendations that:

the adult hourly rate of the minimum wage should increase from £5.80 to £5.93;
increasing the development rate (which will cover workers aged 18-20 years) from £4.83 to £4.92;
that the rate for 16-17 year olds movers from £3.57 to £3.64. They recommend that these changes take place in October 2010;
there should be a single apprentice minimum wage rate of £2.50 per hour for those apprentices currently exempt from the National Minimum Wage;
there should be specific guidance on the National Minimum Wage for the entertainment sector; and
that HMRC investigates whether contract and agency cleaners in the hotel sector are receiving their entitlement under the National Minimum Wage for their hours worked.
4. The Government notes the Commission’s recommendation that there should be a commitment, as a minimum, to maintaining current funding in real terms for monitoring and enforcement of the National Minimum Wage until at least March 2014.

5. The accommodation offset will rise from £4.51 per day to £4.61.

6. The Pay and Work Rights helpline number is 0800 917 2368. As well as receiving and investigating complaints about non-payment of the minimum wage, the helpline offers advice and information in more than 100 languages.

7. The Low Pay Commission estimates that just over 950,000 people stand to benefit from the increase.

8. The National Minimum Wage Compliance strategy is available at http://www.berr.gov.uk/whatwedo/employm ... index.html" onclick="window.open(this.href);return false;

Please contact the Department for Business press office on 0207 215 3496 for more information.

Contacts

NDS Enquiries
Phone: For enquiries please contact the above department
ndsenquiries@coi.gsi.gov.uk

[belle smith]

Is that Royal Mails lattest offer Teebs??

[stokes11eg]

£2.50 for youngsters? Although I've no objection to young people working their way up the pay scale as we did, this is absoloutely shocking.Y.T.S trainess were getting this about a decade ago.

[belle smith]

£2.50 for youngsters? Although I've no objection to young people working their way up the pay scale as we did, this is absoloutely shocking.Y.T.S trainess were getting this about a decade ago.

In fairness stokes thats for apprentices....mind you £3.57 an hour isn't anything to write home about is it.

[stokes11eg]

Yes, but the cost of living isn't any cheaper just because you're 16! Truly if they stayed on at school,and got their 40 quid for staying on, and had a paper round, they would be better off! how many kids will want to work forthat?

[belle smith]

Yes, but the cost of living isn't any cheaper just because you're 16! Truly if they stayed on at school,and got their 40 quid for staying on, and had a paper round, they would be better off! how many kids will want to work forthat?

It is if you stay with your parents and pay £10 digs, i would suggest thats what most 16 year olds do.

I think all the figures there are pitifully low, except the apprentice wage. The reason being they are recieving training not doing work (i'm sure they will be doing some work as part of their training) but the cost to there employer will be more than just their pay. Then at the end of there apprentice ship they will not be earning the derisery sums policed by the low pay commision.

Whats the hourly rate for attending college or university?

[johnsouthwales]

farcical if you ask me.. why the difference in levels between the ages beats me

£5.93 per hour for low paid workers aged 21 and over (a 2.2% increase on the current £5.80 rate);
£4.92 per hour for 18-20 year olds (a 1.9% increase on the current £4.83 rate); and
£3.64 per hour for 16-17 year olds (a 2% increase on the current £3.57 rate.

should have been 2.2 across the board evenly..

besides that, minimum wage should be around £8..

[smokerjim]

farcical if you ask me.. why the difference in levels between the ages beats me

£5.93 per hour for low paid workers aged 21 and over (a 2.2% increase on the current £5.80 rate);
£4.92 per hour for 18-20 year olds (a 1.9% increase on the current £4.83 rate); and
£3.64 per hour for 16-17 year olds (a 2% increase on the current £3.57 rate.

should have been 2.2 across the board evenly..

besides that, minimum wage should be around £8..

Surely a classic case of age discrimination, if ever there was ( but then Govt can make up laws as they go along ) - I wonder what would happen if the over 50s were given a lower rate of pay ( lower cost of living, as kids should have moved out, mortgage should be paid, savings should have been accrued....unless you're working class & live in the real world )

[johnsouthwales]

tricky one that is. that would be age discrimination on the opposite end. some people may not go onto buying a house until mid 30s-40s.. when they reach 50-60, they are just as entitled to have the same wage to pay for the same things their younger counterparts pay for. regardless of circumstances. not all finished paying off house or god knows what.

older people get more redundancy than a younger person according to redundancy calculation table. if two people started at a firm @ 30 and 40 respectively, and both were finished 20 years later, the 50 year old gets 24 1/2 weeks pay and the 60 gets 29 1/2

i know what you are saying when younger people look at someone older. it's easy to assume things are cushty. in a lot of cases, yes. but they are still entitled to work if they wish, have the same benefits. everyone attempts to have equality, even if it gets contorted. maybe a 50-60 is continuing to work cos the mrs is poorly or something. maybe a 50-60 is a secret lotto millionaire. but still is entitled to work. i can see where you are coming from, i've heard it before, why should people with money carry on working when there are younger people itching to get work. it's a heartbreaking dilema.
how would you define two 50 year olds, one with 50k in the bank and the other with 100k, both equally capable of continuing work. maybe its the one with 50k who has finished paying for the house and the other renting. if you finish off the one with 100k, and assume he spends 10k a year as he won't get state benefits because of savings, he'd be skint at 60, and the one with 50k will get 10 years worth of wages and maybe finished paying off his house. if they are both on 10k a year, the one with 100k will end up skint @ 60 and the one with 50k won't and probably end up with having a balance of 100k himself.

not an easy task to define who is who and what is what

[smokerjim]

The point I was making, is the impression I get is it's ok to stick it to the young worker, but the more mature worker is entitled to more ( despite legislation preventing employers from paying different wage levels for similar work.....the success of court cases for sexually equal pay over recent months and years bear this out ) - and even more so, it is Govt sponsored & encouraged ( minimum wage & dole being the obvious examples )

[Straight4ward]

Smoker Jim wrote: I wonder what would happen if the over 50s were given a lower rate of pay?

Given the fact that by this age your working life is starting to draw to a close, you will be attempting to live as frugally as possible to save something for when you retire. The likelihood is that the state pension will be worth bugger all and the RM one will have disappeared into the ether, then the last thing you need is a reduction in your already pitiful wages.

Of course if (and that should probably read "when") the Tories get in, they'll do away with the state pension and the working man will be, quite literally, expected to work until he drops dead.

LOL - RM will have to do away with 'death in service benefits' or it'll end up costing them a fortune!

[Lounge Lizard]

"Smoker Jim wrote: I wonder what would happen if the over 50s were given a lower rate of pay?" - or women again because theirs is just the second wage ?