This rise has been implemented by Vince Cable on the basis of a recommendation by the Low Pay Commission that there should be an increase of 3%. This is the first time in six years that the rise in minimum wage has been set above inflation (which is currently at 1.9%). The Government says that there are over one million workers currently earning the minimum wage who will benefit from this change.
The other increases announced are:
- The minimum wage for 18 to 20 year-olds will increase by 10p to £5.13 an hour (an increase of 2%)
- The minimum wage for 16 and 17 year-olds will increase by 7p to £3.79 an hour (again an increase of 2%)
- Apprentices (who are under 19 or 19 and over in the first year of their apprenticeship) will receive an increase of 5p an hour, meaning their minimum wage will be £2.73 an hour
There had been some speculation that this rise would be higher as George Osborne has previously said that he wants to see the minimum wage increased to £7 an hour.
The changes will take effect on 1 October.