Press release

National Minimum Wage to rise from 1 October 2013

From Tuesday 1 October 2013 the National Minimum Wage (NMW) will rise

For more information see: National Minimum Wage rates

From Tuesday 1 October 2013 the National Minimum Wage (NMW) will rise in accordance with the recommendations set out by the independent Low Pay Commission (LPC) in April this year.

From 1 October 2013:

  • the adult rate will increase by 12p to £6.31 an hour
  • the rate for 18-20 year olds will increase by 5p to £5.03 an hour
  • the rate for 16-17 year olds will increase by 4p to £3.72 an hour
  • the apprentice rate will increase by 3p to £2.68 an hour
  • the accommodation offset increases from the current £4.82 to £4.91

More than 890,000 of Britain’s lowest-paid workers will gain from these changes.

Business Secretary Vince Cable said:

The National Minimum Wage is a vital safety net in protecting the low paid. Each year, the LPC carries out a huge amount of detailed and valuable work to make sure they recommend a rate that supports people on low pay without damaging their chances of getting a job.

But as signs of an economic recovery start to emerge, we need to do more to make sure that the benefits of growth are shared fairly across the board.

That is why in addition to their ongoing annual remit, I am asking them to extend their expertise to help the government and business understand how we can deal with the issue of low wages in the economy. In particular I have asked them to look at what economic conditions would be needed to allow the National Minimum Wage to rise in the future by more than current conditions allow.

In addition, from 1 October employers who fail to pay the National Minimum Wage (NMW) will be publicly named and shamed under revamped plans announced last month to make it easier to clamp down on rogue businesses.

The new rules are part of government efforts to toughen up enforcement of the NMW and increase compliance. By naming employers it is hoped that bad publicity will be an additional deterrent to employers who would otherwise be tempted not to pay the NMW. This is on top of financial penalties which employers already face if they fail to pay NMW.

Paying any less than the minimum wage is illegal and if employers break this law they need to know that we will take tough action. Anyone who feels they are being exploited should contact the Pay and Work Rights Helpline on 0800 917 2368.

Notes to editors:

  1. The Press Notice where the government accepted the Low Pay Commission’s recommendations can be found at ‘Government approves new National Minimum Wage rate of £6.31’.

  2. The Press Notice outlining the revised naming scheme can be found at ‘National minimum wage rogues to be publicly named and shamed under new plans’.

  3. If workers feel they aren’t getting the minimum wage that they are legally entitled to then they should contact the free and confidential Pay and Work Rights Helpline on 0800 917 2368.

  4. For more information about the changes to National Minimum Wage visit www.facebook.com/nmwage

  5. The government’s economic policy objective is to achieve ‘strong, sustainable and balanced growth that is more evenly shared across the country and between industries’. It set 4 ambitions in the ‘Plan for Growth’, published at Budget 2011:

  • to create the most competitive tax system in the G20
  • to make the UK the best place in Europe to start, finance and grow a business
  • to encourage investment and exports as a route to a more balanced economy
  • to create a more educated workforce that is the most flexible in Europe

Work is underway across government to achieve these ambitions, including progress on more than 250 measures as part of the Growth Review. Developing an Industrial Strategy gives new impetus to this work by providing businesses, investors and the public with more clarity about the long-term direction in which the government wants the economy to travel.

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