Tuesday, May 12, 2009

Minimum Wage - some increase better than none and apprentice recommendation some cause for celebration


Today the Low Pay Commission have published their recommendations for the national minimum wage - and the Government have responded.


Against powerful and sustained business lobbying the LPC have recommended increases, though incredibly 'modest'. The increases are a disappointment but the increase at all can be regarded as a moderate success.


So the rates will be: (health warning on percentages - I've worked them out myself so my maths might be wrong)
  • 22 and over can look forward to an increase from £5.73 to £5.80 an hour (7p! - 1.22%)
  • The rate for 18 to 21-year-olds will also rise from £4.77 to £4.83 (6p! - 1.26%)
  • For 16 and 17-year-olds, the rate will rise from £3.53 an hour to £3.57 (4p! - 1.13%)

Disappointingly there has been no movement on the age differentials, other than with the Government finally accepting the LPC's recommendation that the adult rate starts at 21, though this wont be implemented until 2010.


The real good news is the recommendation to include apprentices within the National Minimum Wage. UNISON, together with our campaign partners, have made strong arguments about the protection of these workers and the low pay commission has taken on board many of our arguments. The Low Pay Commission has asked the Government to ask them to look in detail at the arrangements for a rate to cover apprentices and its implementation in its next round. The Government has not yet accepted that recommendation and says it will respond in the summer when it sets the LPC's remit.


This means that there is now an important piece of work UNISON needs to do with our partners to make sure that the Government accepts the recommendation. Then it will be key to make sure that the provisions really support apprentices.

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