Secretary of State for Wales Cheryl Gillan has today [19th March 2012] welcomed the rise in National Minimum Wage adult rate as a result of the Low Pay Commission’s (LPC) recommendations.
The Welsh Secretary said that the commission had struck a difficult balance between providing fair wages, whilst not over-burdening Welsh business.
The Government approved a new £6.19 rate, which will benefit 1.1 million workers on National Minimum Wage, some 60,000 of those in Wales.
Mrs Gillan said: “It is right that the LPC’s recommendations have been taken onboard. The Coalition Government believes that more support should be given to those on low to middle incomes and this announcement not only provides an incentive to work, but offers important protection to low paid workers.
“Wales has its own set of challenges during the period of economic recovery and it is vital that the rise in the national minimum wage balances the need to provide a fair wage, whilst not over-burdening business. It is essential that Welsh business is given the opportunity to grow - in particular the private sector and this is a welcome and fair step forward.”
Notes to editors:
1. The LPC makes recommendations to the Government in its annual report. The Government has accepted the following recommendations:
- that the adult rate is increased by 11 pence to £6.19 an hour from 1 October 2012
- a Youth Development Rate of £4.98 an hour and a 16-17 Year Old Rate of £3.68 an hour from 1 October 2012
- that the Apprentice Rate be increased by 5 pence to £2.65 an hour from 1 October 2012
- that the accommodation offset should be increased by 9 pence to £4.82 per day from 1 October 2012
2. Increases announced to date will benefit 25 million individuals, and take 1.1 million low income individuals out of tax from April 2012. As a result, basic rate taxpayers will gain by £210 a year in real terms in 2012-13.