An increase in the National Minimum Wage (NMW) of 3% has been recommended by the Low Pay Commission (LPC).
A report by the independent body, released this week, concluded that the minimum hourly rate should rise to £6.50 for adults and to £5.13 for the Youth Development Rate.
The final decision on whether to implement the LPC’s proposal will be made in the following weeks but the government takes seriously the recommendations made by the advisory group.
According to LPC chair, David Norgrove, the proposal was reached by ‘balancing the risk’ of recommending more than businesses could afford against the risk of too little being done to assist the earnings for the lowest paid.
He said: “This rate is likely to increase the number of jobs covered by the minimum wage by over a third to around 1.25m.
“Provided the economy continues to improve we expect to recommend further progressive real increases in the value of the minimum wage, restoring and then surpassing its previous highest level, so that 2014 will mark the start of a new phase – of bigger increases than in recent years – in the work of the Commission.”
Significant boost
The rise was described as a ‘significant boost’ by UNISON general secretary Dave Prentis, that would benefit millions of low paid workers.
“However, UNISON will continue its campaign for a Living Wage for all workers,” Prentis said.
“At £6.50 an hour, the new minimum wage would still over a £1 less than the Living Wage needed to keep people out of poverty.
“It is also less than the Chancellor’s own stated support for a £7 an hour minimum wage rate.
“The Government should have the courage of its convictions and propose meeting that target.”