Minimum wage increases by 1.9 per cent

The national minimum wage for adults will rise by 12p from October 2013 to £6.31 an hour, ministers have announced. This represents a cash increase of 1.9 per cent – but a real-terms cut when compared with current retail price inflation of 3.2 per cent.

The minimum rate for young people aged 18-20 will rise by even less, just 5p (1 per cent), to £5.03 an hour. For those aged 16-17 it will rise by 4p (1.1 per cent) to £3.72.

Ministers did, however, reject a recommendation from the official Low Pay Commission that the rate for apprentices should be frozen. The apprentice rate will instead increase by 3p (1.1 per cent) to £2.68 an hour.

SourceNational Minimum Wage: Government Response to the Low Pay Commission’s 2013 Report, Department for Business, Innovation and Skills | National Minimum Wage: Low Pay Commission Report 2013, Cm 8565, Department for Business, Innovation and Skills, TSO
LinksResponse | Hansard | DBIS press release | LPC report | LPC press release | BYC press release | CBI press release | Citizens Advice press release | IEA blog post | Labour Party press release | TUC press release | BBC report | Full Fact blog post | Guardian report | New Statesman report | UnionNews report