Union attacks ‘derisory’ minimum wage rise

Unitesaid the wage should rise by £1 to pump demand into the economy.

The national minimum wage is to increase by 12p-an-hour for adults to £6.31 from October. The rate for 18 to 20-year-olds will rise by 5p to £5.03, and by 4p to £3.72 for 16 and 17-year-olds.

Unitegeneral secretary Len McCluskey said:

“An increase of £1-an-hour would have the twin-pronged effect of putting money into the wallets and purses of the lowest paid in the UK. They would then have a small extra incentive to spend in the country's high streets, already on its knees because of the flatlining economy.

“A £1 uplift is a more sensible way to help people off benefits - and much more humane than what the government is currently doing with its savage welfare cuts. In the long-term, increasing the national minimum wage could save the country billions.”

The increases are below current inflation levels - Retail Prices Index inflation is currently 3.2%.

Business Secretary Vince Cable said: "The independent Low Pay Commission plays a crucial role in advising the government when setting the national minimum wage every year. It balances wages of low paid workers against employment prospects if the rate was set too high.

"We are accepting its recommendations for the adult and youth rate increases, which I am confident strikes this balance. However, there is worrying evidence that a significant number of employers are not paying apprentices the relevant minimum wage rate.”