More pocket money for low-paid workers

This follows today’s announcement that the UK Government will be boosting the National Minimum of Wage (NMW), in line with recommendations from the Low Pay Commission.

The Low Pay Commission is a statutory body whose role is to advise the government on the National Minimum Wage.

As well as increasing the three minimum wage categories from October 2010, a new apprentice rate will be introduced at £2.50 an hour. This will be the first time apprentice pay will be covered by the minimum wage framework.

These are among the NMW changes you can expect from October:

• NMW for adults will rise 2.2 per cent from £5.80 to £5.93.

• The ‘adult’ threshold will be lowered from 22 to 21, meaning 21-year-olds will be 20.3 per cent better-off, with a NMW increase from £4.83 to £5.93.

• NMW for 18 to 20-year-olds will increase by 1.9 per cent from £4.83 to £4.92.

• NMW for 16 and 17-year-olds will increase by 2 per cent from £3.57 to £3.64.

• Apprentices who are currently exempt from the NMW – eg those under the age of 19 and older apprentices in their first year of an apprenticeship, will be granted a NMW of £2.50 per hour.

• The accommodation offset will increase from £4.51 to £4.61 per day.

The government accepted all of the Low Pay Commission’s recommendations except that on funding for enforcement.

The full report is available from Stationery Office Bookshops or the Commission's website at www.lowpay.gov.uk.