Labour Research June 2009


Minimum wage up

The government has accepted most of the recommendations of the Low Pay Commission on the National Minimum Wage, although it has deferred for one more year the inclusion of 21-year-olds in the adult rate.

The limited scale of this October’s increases (up 7p to £5.80 for adults, up 6p to £4.83 on the youth development rate, and up 4p to £3.57 for 16- and 17-year olds) has come in for some criticism. However the government’s endorsement of “naming and shaming” employers at fault, requiring local authority and NHS social care commissioning to reflect true minimum wage costs, and tackling non-payment in the informal sector are likely to receive a warmer union welcome.