Low Pay Commission recommends 20p national minimum wage increase
Yesterday the Low Pay Commission issued its recommendation that the rate increase by 20p from October to £6.70 an hour.
It also said youth rates should increase by 3.3% to £5.30 per hour for 18 to 20 year olds, by 2.2% to £3.87 for 16 to 17 year olds and by 2.5% to £2.80 for apprentices.
Katja Hall, deputy director-general at the Confederation of British Industry, said: “The LPC has struck a careful balance. As the economic recovery cements, the Commission has reconciled a desire to reflect this in pay packets while recognising that productivity growth – the key to sustainable pay rises – remains weak.
“We welcome the commitment to review next year’s rise if the improved business environment doesn’t materialise.
“The National Minimum Wage has been one of the most successful policies of our time thanks to the independent recommendations of the Commission, helping many low-paid workers without damaging their job prospects.
“Any artificial increase due to political expediency will help no-one and ultimately damage one of the most successful government policies in recent years.”
Industry response
ALMR chief executive Kate Nicholls said: “The Low Pay Commission has recognised the very real pressures being placed on businesses in terms of labour costs and tightening margins and the increases reflect this. We are also pleased to see the Commission recognising the importance of keeping youth and apprenticeship rates affordable for businesses. As a result, we are urging all parties to accept the recommendation.
“The latest ALMR employment survey shows that almost half of respondents reported an average hourly wage of £7 or more. Pubs, bars and restaurants are clearly willing to invest in their staff if the conditions are right. A little extra money in the pockets of our staff will also no doubt go some way to supporting pubs and bars across the UK."
Hospitality firms named and shamed
A list of 70 businesses that failed to pay their workers minimum wage was also released yesterday by business minister Jo Swinson, who said: “Paying less than the minimum wage is illegal, immoral and completely unacceptable. Naming and shaming gives a clear warning to employers who ignore the rules, that they will face reputational consequences as well as financial penalties of up to £20,000 if they don’t pay the minimum wage.
“We are legislating through the Small Business, Enterprise and Employment Bill so that this penalty can be applied to each underpaid worker rather than per employer.”
Among the firms named were:
Leisure Emporium Ltd trading as Brown’s Cafe Bar & Bistro, Nottingham, neglected to pay £643.86 to a worker
Gary & Toni Valentine trading as The Harbour Inn, Seaton, neglected to pay £584.42 to a worker
Inn2inns Ltd, Middlesbrough, neglected to pay £323.10 to 2 workers
