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12p Rise in National Minimum Wage

Monday, April 15, 2013

Monday 15th April 2013

GMB Welcomes 12 Per Hour Increase In National Minimum Wage From 1st October 2013 As “Vital Pay Rise”.

However the rise is well below inflation so the living standards of the people at the bottom end of the scale will fall delaying economic recovery says GMB.

GMB commented on the 12p per hour increase in National Minimum wage to £6.31 per hour from 1st October 2013. See notes to editors for BIS press release.

Paul Kenny GMB General Secretary said, “This is a vital pay rise. GMB welcomes Vince Cable's recognition that a pay rise is needed by the lowest paid.

However the rise is well below inflation so the living standards of the people at the bottom end of the scale will fall.

These workers will have less to spend in the economy. They can't spend what they don’t have. The economy will take longer to recover and in the meantime everything else keeps going up in price.”

End

Contact: Kamaljeet Jandu 07956 237 178 or Lisa Johnson 07900 392 228 or GMB press office 07921 289880

Notes to Editors

Copy of BIS press release 15 April 2013 10:30

Government approves new National Minimum Wage rate of £6.31


The government has today accepted the independent Low Pay Commission’s (LPC) recommendations for this year’s adult and youth National Minimum Wage (NMW) rates.

However, the government has concluded that the apprentice rate should be increased rather than frozen as recommended by the LPC. The LPC based this recommendation on concerns about level of compliance with the apprentice rate.

The following rates will come into effect on 1 October 2013:

  *   The adult rate will increase by 12p to £6.31 an hour
  *   The rate for 18-20 year olds will increase by 5p to £5.03 an hour
  *   The rate for 16-17 year olds will increase by 4p to £3.72 an hour
  *   The apprentice rate will increase by 3p to £2.68 an hour.
  *   The accommodation offset increases from the current £4.82 to £4.91

Business Secretary Vince Cable said:

“The independent Low Pay Commission plays a crucial role in advising the government when setting the National Minimum Wage every year. It balances wages of low paid workers against employment prospects if the rate was set too high.

“We are accepting its recommendations for the adult and youth National Minimum Wage rate increases, which I am confident strikes this balance. However, there is worrying evidence that a significant number of employers are not paying apprentices the relevant minimum wage rate.

“Apprenticeships are at the heart of our goal to support a stronger economy, and so it is important to continue to make them attractive to young people. Therefore, I am not taking forward the LPC's recommendation to freeze the apprenticeship rate due to non-compliance, but instead am raising it in line with the youth rates. We are working on a series of tough new measures to ensure we tackle non-compliance issues across the board.”

Chair of the LPC David Norgrove said:

“We welcome publication of our 2013 Report today and the Government's acceptance of our recommendations on the level of the National Minimum Wage for adults and young people. We also very much welcome the Government’s commitment to tackle non-compliance in the areas highlighted by us.”

The government will be working with employers, apprentices and training providers to improve awareness of rights and responsibilities on pay. Along with this, it will be undertaking focused enforcement work to clamp down on non-compliance by employers of apprentices.

The government supports work experience as a valuable way of helping young people get into work. The law on the NMW is clear. Work experience as part of an education course and pre-employment provision is exempt under the NMW regulations. However, if somebody is a worker under NMW legislation, then they are entitled to the minimum wage.

Notes to editors:

1. The independent Low Pay Commission was established following 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.

2. The LPC makes recommendations to the Government in its annual report. For more details and copies of the report see http://www.lowpay.gov.uk/

3. The government has noted the following recommendation:

  *   That the government should ensure that contracts issued by public bodies which commission the provision of social care contain a clause requiring at least the National Minimum Wage to be paid, just as they may require compliance with other aspects of the law, such as health and safety legislation.

4. The apprentice rate applies to apprentices under 19 or over 19 and in the first year of their apprenticeship

5. The LPC monitors and evaluates the impact of the NMW, with particular reference to the effect on pay, employment and competitiveness in low paying sectors and small firms; the effect on different groups of workers; the effect on pay structures; and the interaction between the minimum wage and the tax and benefit systems. The Commission reviews the level of each of the NMW rates and makes recommendations, if appropriate, for change.

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