Above inflation rise for National Minimum Wage

Over 1 million of Britain’s lowest-paid workers are set to benefit as new National Minimum Wage (NMW) rates come into force from 1 October 2014.

The rate rise to £6.50 per hour, the first real terms cash increase since 2008, follows the recommendations from the independent Low Pay Commission (LPC) in March this year (2014) and the call for faster, affordable rate rises by Business Secretary Vince Cable.

The National Minimum Wage rates from 1 October 2014, as recommended by the LPC, are:

a 19p (3%) increase in the adult rate (from £6.31 to £6.50 per hour)
a 10p (2%) increase in the rate for 18 to 20-year-olds (from £5.03 to £5.13 per hour)
a 7p (2%) increase in the rate for 16 to 17-year-olds (from £3.72 to £3.79 per hour)
a 5p (2%) increase in the rate for apprentices (from £2.68 to £2.73 per hour)
The rate rise will mean more than 1 million people are set to see their pay rise by as much as £355 a year.