Low Pay Units across the UK have welcomed today's increase in the minimum wage but expressed concern that there is still no mechanism in place to ensure an adequate and consistent annual uprating. On October 1 the minimum wage for adult workers rises to £4.10 an hour and the rate for those aged 18 to 21 rises to £3.50.
- This is a significant increase of 40p an hour in the adult rate - yet in practice it only restores the value of the minimum wage to its 1999 level.
- Next year's increase will be just 10p - meaning that the real value of the minimum wage will fall again.
The Low Pay Units are also urging the government to look again at the position of young workers. Most employers already pay adult rates from 18: making this a legal requirement would prevent any young workers being exploited because of their youth. This is why 16 and 17 year olds, who are currently excluded, must be entitled to a percentage of the full adult rate.
A spokesperson for the Low Pay Unit said:
"This increase is good news for millions of low paid workers but only maintains their level of earnings in relation to average pay. Ministers must now commit themselves to regular and predictable increases. These must be at least in line with increases in average earnings but over time they should also raise the value of the minimum wage so that it becomes a decent, living wage. The government should also act to end the scandal of cheap youth labour by extending the minimum wage to younger workers."
For further information call:
Jeff Masters or Bharti Patel at Low Pay Unit on 020 7435 4268 or 07887 567 494
Notes to editor:
Notes for editors
1.) The low pay units provide advice, training and research on pay and employment rights.
2.) The Low Pay Commission has now produced three reports, recommending in each that workers aged 21 and above should be entitled to the full minimum wage (see www.lowpay.gov.uk).
3.) The government has announced that it plans to increase the minimum wage to £4.20 in October 2002. See www.dti.gov.uk for the official position.
4.) The government's national minimum wage helpline is 0845 6000 678.
5.) Estimated numbers affected by increase in minimum wage to £4.10: 1300,000
