Low Pay Commission Recommends 3% Rise

Key Recommendation: The Low Pay Commission (LPC) has proposed a 3% increase in the adult minimum wage, raising it to £6.70 per hour from October.

Adult Minimum Wage Increase

The national minimum wage for adults is currently £6.50 per hour. If ministers accept the LPC’s advice, it will rise to £6.70 from October this year—marking the largest increase in eight years.

Youth Minimum Wage Adjustments

The LPC also recommends:

• 18- to 20-year-olds: increase to £5.30 (from £5.13)
• 16- to 17-year-olds: increase to £3.87 (from £3.72)

Apprentice Rate Adjustment

Apprentices would see a 2.5% rise in their hourly rate, from £2.73 to £2.80. This change aims to support young workers gaining vital skills.

Reactions

Business Secretary Vince Cable commented, “If this recommendation is accepted, the value of the minimum wage would be higher than when we came to office in 2010, restoring much of what was lost during the financial crisis.”

CBI Deputy Director-General Katja Hall welcomed the LPC’s “careful balance,” warning that any artificial increase due to political expediency could ultimately harm one of the government’s most successful policies.

W.E.U. Perspective

The Workers of England Union (W.E.U.) supports any rise in the minimum wage but continues to campaign for a genuine living wage—which remains significantly higher than the proposed figures.

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