The Government has accepted the independent Low Pay Commission’s (LPC) recommendations for this year’s National Minimum Wage (NMW) rates.
The adult rate will increase by 11p to £6.19 an hour; and the following rates will come into effect on 1 October 2012:
The rate for 18-20 year olds will remain at £4.98 an hour; the rate for 16-17 year olds will remain at £3.68 an hour and the rate for apprentices will increase by 5p to £2.65 an hour.
Business Secretary Vince Cable said: “I believe that the recommendations of the Low Pay Commission strike the right balance between pay and jobs, and have therefore accepted all the rate recommendations. The Low Pay Commission has done a good job in difficult circumstances.
“In these tough times freezing the youth rates has been a very hard decision – but raising the youth rates would have been of little value to young people if it meant it was harder for them to get a job in the long run.”
Chair of the LPC David Norgrove said: “We welcome the Government’s acceptance of our recommendations on the rates for the National Minimum Wage. The Commission was again unanimous, despite all the economic uncertainties and the different pressures on low-paid workers and businesses. We believe we have struck the right balance between the needs of these workers and the challenges faced by employers.”
It was also announced today that David Norgrove has been reappointed as chair of the LPC. His reappointment was made under the terms of the Code of Practice and other guidance issued by the Commissioner for Public Appointments. He will serve a second spell as Chair for a further term of four years from April 2012 to March 2016.
Notes
The Low Pay Commission was established after the National Minimum Wage Act 1998 to advise the Government on the National Minimum Wage. It is made up of representatives from all sides of industry. For more details and copies of the report see http://www.lowpay.gov.uk/
