Criticism over 10p rise in minimum wage

As cabinet ministers pocket a pay rise of over £52 a week (see this page), trade and industry secretary Stephen Byers has announced an increase in the national minimum wage of 10p an hour. Union reaction was scathing.

The rise, which takes the rate for two million low-paid workers to

£3.70 an hour, will not come into effect until October - six months later than the anniversary of its introduction. The rate for 18-21 year olds will rise by 20p to £3.20 an hour from June.

Byers, who announced this year's uprating after a series of meetings with chancellor Gordon Brown, is believed to have been persuaded that a modest rise half way through the financial year - plus the earlier increase for young workers - would be broadly acceptable to employers

and would not undermine the government's economic policy.

Byers also rejected the Low Pay Commission's recommendation that the age for the adult rate should be reduced from 22 to 21.

Dave Prentis, general secretary elect of the largest union, public

services union UNISON, said: "UNISON and our low-paid members will not be hoodwinked into believing that something is better than nothing by this 10 pence increase - it is just gesture politics". He asked whether the low paid will be forced to wait another 18 months for the next increase.

* How Europe raises its minimum: page 9

* Minimum wage fears unfounded: page 11