Meagre rise in minimum wage is announced

The government has announced that the National Minimum Wage (NMW) will go up by just 17p this year.

From 1 October, the adult rate (for workers aged 22 and over) will rise to £5.52 an hour - a 3.2% increase, reflecting the Low Pay Commission's decision last year that "the phase in which the Commission is committed to increases in the NMW above average earnings is complete".

The hourly rate for 16- to 17-year-olds will rise by a more 3% to £3.40, while workers aged 18-21 will do slightly better - a 3.4% increase will bring their rate to £4.60.

Unions expressed considerable disappointment at the increases, with the T&G general union highlighting the fact that they were announced on the eve of International Women's Day.

"Raising the NMW to a higher level is a crucial part of closing the gender pay gap," said Diana Holland, national organiser for women, race and equalities. "We are concerned that the progress that has been made in tackling inequality could be rolled back if the NMW fails to even keep pace with inflation."

Public services union UNISON, which had given evidence to the Commission in favour of raising the NMW to £6.75 an hour, pointed out that higher wages will be needed to underpin the government's aim of improving the quality of childcare and social care.