Minimum wage increase will benefit one million

Approximately one million workers will benefit when the national minimum wage (NMW) increases to £5.73 per hour on Wednesday 1 October, the TUC says.

Two-thirds of the beneficiaries will be women and the increase in the NMW will also save the taxpayer an extra £245 million in reduced payments of in-work benefits.

Next week's 3.8% increase will be the ninth increase since it was introduced in April 1998.

While the NMW has helped millions, the TUC's Commission on Vulnerable Employment revealed earlier this year that a significant number of employers are illegally paying less than the NMW.

The TUC today renews its call for tougher penalties to deter minimum wage cheats, better resources for enforcement and the extension of the Gangmasters' Licensing Authority regime to other sectors where exploitation is common, in particularly hospitality.

TUC General Secretary Brendan Barber said: "The increase in the minimum wage will help thousands of families but the low-paid face a high inflation rate as they spend a much greater proportion of their income on food and energy where prices have rocketed.

"It is entirely predictable that some employer groups will say that the minimum wage increase will threaten jobs, yet it has helped millions without significant job losses. The Low Pay Commission should robustly reject employer scare-mongering and recognise the higher inflation faced by the low paid when it shortly sets next year's increase.

"Honest employers do suffer however, when dodgy ones fail to pay the minimum wage. Dodging the minimum wage also leaves the UK's vulnerable workers in even deeper poverty - and we all pay the price for this. Tougher enforcement penalties and greater funding for HM Revenue and Customs are the best ways to crackdown on these minimum wage cheats."

Words: Clare Riley

« Back to previous page