Minimum wage should increase by 20p, says Low Pay Commission

The body responsible for advising the Government on pay has suggested the rise, taking adult minimum wage to £6.70 an hour.
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Adult minimum wage should increase by 20p, taking it to £6.70 an hour, according to the Low Pay Commission.

The new minimum could be adopted by October 2015 and would represent a three per cent increase on the current rate.

The increase has been recommended by the Low Pay Commission, the independent body that advises the Government on pay.

Despite indications that Chancellor of the Exchequer, George Osborne would see higher increases, the body suggests that a more modest raise in minimum wage will aid the continued recovery of the UK’s economic standing.

Low Pay Commission chair, David Norgrove, said: “Sharp increases in the minimum wage would put jobs at risk – not least bearing in mind pressure on low-paying sectors and small firms.

“We do believe, however that the continued recovery and in particular the impressive growth in employment of the low paid, should this year allow a further increase in the real and relative value of the minimum wage.

“An increase of three per cent to £6.70 is a larger real terms increase than last year and, on the basis of the most recent Bank of England inflation forecast, should restore three quarters of the fall in the real value of the national Minimum Wage relative to its peak in 2007.”

The recommendation arrives in the same month David Cameron told the British Chambers of Commerce that it is time to ‘give Britain a pay rise’ because business conditions ‘have not been this good for a long time.’

However, Retail Week reports that some retailers have pointed out the difficulties in increasing staff pay due to the high business rates.


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