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Minimum wage rises to £5.80 per hour

The government has just announced that the minimum wage will increase by 7p to £5.80 per hour from October. This follows on from an increase of 21p last year. The rate for 18-21 year olds will go up by 6p to £4.83 and for 16-17 year olds by 4p to £3.57.


This level of increase was recommended by the Low Pay Commission and its chairman, George Bain said: These are very challenging times for the UK and unprecedented economic circumstances for the minimum wage. We believe that the Low Pay Commission’s recommendations are appropriate for this economic climate. They reflect the need to protect low-paid workers’ jobs as well as their earnings.


In fact, the UK’s national minimum wage has now been in place for 10 years, having started on 1st April 1999. The changes in the minimum wage over this period can be seen in the graphic below.

National Minimum Wage   Source: Low Pay Commission

National Minimum Wage Source: Low Pay Commission


Not everyone will be happy with the change in the wage this year as The British Chambers of Commerce had been calling for a freeze due to the severity of the current recession on UK industry and the increasing levels of unemployment.


It was also announced that from next year 21 year olds would start to receive the adult minimum rate.

Posted in Minimum Wage

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