Minimum Wage to Rise - 8th Mar, 2007

Sian James has welcomed the Independent Low Pay Commission recommended new rate of £5.52 an hour.

Independent Low Pay Commission recommend new rate of £5.52 an hour

More than a million workers, two thirds of them low paid women will benefit from a rise in the National Minimum Wage from £5.35 to £5.52 an hour from October.

The Department of Trade & Industry has accepted the level recommended by the independent Low Pay Commission which will also mean increases from £4.45 to £4.60 for 18-21 year olds, and from £3.30 to £3.40 for 16-17 year olds.

The announcement means the minimum wage has gone up by almost 30% more than inflation since it was introduced in 1999, with the number of jobs increasing by almost 2m in the same time. Since October last year the minimum wage for adults, combined with Working Tax credits and other benefits, has guaranteed an income of at least £268 a week for families with one child and one full-time worker.

Sian James MP said:

“More than a million workers, two thirds of them low paid women will benefit from this announcement. It means the minimum wage has gone up by almost 30% more than inflation since 1999.

“The reality is that just 10 years ago home workers could be paid as little as 35p an hour, cleaners £1.30 an hour and security guards £2.25 an hour. It’s bad for families and just plain wrong.

“I am proud of the minimum wage, proud of how it is helping families and proud of the role it plays in the modern economy we are delivering.”

In January new measures came into force to back the minimum wage with tougher enforcement. These include:

• a typical penalty for underpaying a single worker is now more than £200.
• Employers who fail to pay the minimum wage can face prosecution, risking a criminal record and a £5,000 fine.
• The Government has already targeted hairdressing and childcare sectors for enforcement. The next sector will be hotels, followed by hospitality.

Since 1999 the Government has helped tens of thousands of workers recover £22.6 million in unpaid wages.