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National Minimum Wage increases 2010

National Minimum Wage increases 2010
Tuesday, 30 March 2010 23:00

The National Minimum Wage is to rise by 2.2 per cent from 1 October 2010. This means that the, the hourly adult rate will increase from £5.80 to £5.93. The new rates, which will come into force on 1 October 2010 will be:

  • workers aged 21 and over £5.93 per hour
  • workers between 18 and 20 year olds £4.92 per hour
  • for aged 16-17 year olds £3.64

The accommodation offset will rise from £4.51 per day to £4.61.

The news has angered some business groups.

Adam Marshall, director of policy and external affairs at the British Chambers of Commerce (BCC), said: "The national minimum wage increase took some of the shine off a Budget that had small and medium-sized businesses at its heart.

"It is astounding that the government would increase the minimum wage by 2.2 per cent at a time when private sector wages are virtually flat, and companies across the country are still making tough choices to keep as many people in employment as possible."

The British Retail Consortium (BRC) described the increase as "irresponsible".

Stephen Robertson, the BRC's director general, said: "A measure of this magnitude should have been in the Budget speech. It's at odds with government promises of prudence and public sector freezes and will damage retailers' ability to maintain and create jobs. How can an increase virtually double last year's be justified? Economic conditions were far weaker in the run up to this year's decision than twelve months earlier."

Once the economy returns to stability, the BRC wants the Low Pay Commission (LPC), which recommends the minimum wage rate to the government, to establish a more predictable relationship between the rate and average earnings movements.

This would mean that the LPC would provide a longer-term outlook for the minimum wage, offering businesses greater certainty about the direction of future costs, the BRC said.

Business Minister, Pat McFadden said: The Low Pay Commission, which includes employers and trade union representatives, carefully considered the latest economic data and evidence before making its recommendations, balancing the needs of businesses and workers.

The recommendations provide a welcome increase for workers, but the economy is still fragile and government must continue to support the recovery in the months ahead.

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