The national minimum wage has increased to £6.70, the biggest real term rise in seven years.
The 3% hike will see minimum waged workers earn 20p more per hour in a bid to increase spending and comply with proposals from the Low Wage Commission.The change is expected to aid more than 1.4 million low paid workers.
Improvement For All Employees
The changes to the national minimum wage were announced in The Budget with numerous workers benefiting from the changes. The hourly rate for 18- to 20-year-olds increased from £5.13 to £5.30 up 3% and by 8p to £3.87 for 16- and 17-year-olds, a rise of 2%.
Apprentices saw the biggest ever rise for their working category with the minimum wage for apprentices rising by 57p to £3.30, an increase of 20%.The rise for apprentices went above the suggestions of the Low Wage Commission.
“Financial Stability”
Prime Minister David Cameron believed that increases to all workers across the board would lead to "more financial security" to workers.
However some criticised the move to politicise the minimum wage increase.
The CBI director general, John Cridland, said: “It’s positive that the government has accepted the independent Low Pay Commission’s recommendations on the adult and youth rates.
“The commission struck a careful balance, helping many low-paid workers without damaging their job prospects.
“The national minimum wage has been one of the most successful policies of recent years, thanks to the independence of the commission – its politicisation is worrying.”
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