new minimum wage rates recommendations accepted by government
The new wage rates recommended by the Low pay commission have been accepted by the government. They will be implemented from 1st October 2008.
The aduilt minimum wage will rise from £5.52 to £5.73 per hour. The youth development rate goes up from £4.60 to £4.77. The rate for 16-17 year olds will increase from £3.40 to £3.53 an hour.
Paul Myners said "I am delighted that the Government has confirmed these increses will go ahead"
The Trade Union Congress (TUC) welcomed the rise. Brendan Barber the TUC general secretary responded "We welcome this increase in the minimum wage, which will benefit more than a million low paid workers."
John Cridland CBI director general said "Over the last few years the Low Pay Commission has taken the right stance by not increasing the minimum wage by more than the growth in average earnings, whilst also taking into account the prevailing economic climate and firms' ability to pay,"
But not everyone was satisfied. Union leaders felt the rise insufficient. One union leader suggested a rise to £6.75 was more appropriate. Another suggested that the abolution of the lower tax rate of 10% would result in higher tax bills which would not be covered by this rise.
Paul Myners resumes "The UK has had a minimum wage for almost nine years now. Throughout that time it has served the nation’s lowest paid workers well, increasing their pay without endangering their jobs".
Next Step:
Please contact us if you need further advice, have any questions about our services, would like a free consultation or a fixed fee quote.
Call us now on 01444 484732
