Minimum Wage Increased

Yesterday, when the government came under attack from all sides in the House on its EU referendum U-Turn, Gordon Brown tried to deflect the critics by announcing an increase to the National Minimum Wage, a week before the budget.

Adults who receive £5.52 an hour will receive £5.73, 18-21-year-olds will get a rise of 17p an hour to £4.77 and 16-17-year-olds will be paid £3.53, up from £3.40.

The government said nearly one million low paid employees, two thirds of them women, will benefit from the increase. The government has also boosted funding for enforcement of the NMW and is planning tough new penalties for rogue employers who underpay staff as part of the Employment Bill, now before the Parliament.

Business Secretary John Hutton said: "The National Minimum Wage remains one of the most important rights introduced by the government in the last decade. Before it was introduced, some workers could expect to be paid as little as 35p an hour; our legislation has ensured that can no longer happen..."I am proud of the minimum wage; it makes a real difference to the lives of many of our lowest-paid workers and protects them from exploitation. It also creates a level playing field for business and boosts the economy."