Increases to the National Minimum Wage

Anna Moyle

There is growing pressure from many quarters to introduce a living wage. All of the main parties at their recent conferences made promises aimed at improving the financial position of those on the national minimum wage (“NMW”).

In line with Vince Cable’s speech to the Liberal Democrats, BIS has already announced that the government is to propose to the Low Pay Commission that there should be a single NMW rate for apprentices and 16-17 year olds, with the apprenticeship rate rising as a result by just over £1 to match the rate for 16-17 year olds.

Ed Milliband said that the Labour Party will increase the NMW to £8.00 an hour, which is just under the amount calculated as being the London Living Wage of £8.80. However, the introduction of a living wage is clearly not going to happen soon and in the meantime the NMW has increased from 1 October 2014 as follows:-

  • Adult rate – increased 19p from £6.31 to £6.50 per hour

  • Rate for 18-20 year olds increased 10p from £5.03 to £5.13 per hour

  • Rate for 16-17 year olds increased 7p from £3.72 to £3.79 per hour

  • Rate for apprentices increased 5p from £2.68 to £2.73 per hour