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Minimum wage increase

Posted on Monday, 16th September 2013 by

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The Low Pay Commission’s recommendations for adult and youth National Minimum Wage were accepted earlier this year and will come into effect on 1 October 2013. The government did however reject the Low Pay Commission’s recommendation that the apprentice fee should be frozen and have instead agreed to increase the rate.

The following rates will come into effect on 1 October 2013:

  • the adult rate will increase by 12p to £6.31 an hour
  • the rate for 18-20 year olds will increase by 5p to £5.03 an hour
  • the rate for 16-17 year olds will increase by 4p to £3.72 an hour
  • the apprentice rate will increase by 3p to £2.68 an hour.
  • the accommodation offset increases from the current £4.82 to £4.91

In order to advise the government on what the National Minimum Wage should be each year the Low Pay Commission are required to balance the wages of low paid workers against what the employment prospects would be if the wage was set too high.

As there was potentially worrying evidence that many employers were not paying the correct rate of National Minimum Wage the government chose to reject the proposal of a freeze to the apprenticeship rate due to non-compliance and instead raised the rate. They are also attempting a series of new measures to ensure that non-compliance to National Minimum Wage across the board is tackled.

Apprenticeships are at the heart of the government’s plans to make the economy and therefore it is important to make being an apprentice affordable and a worthwhile opportunity to young people.

Chair of the Low Pay Commission David Norgrove said “The government will be working with employers, apprentices and training providers to improve awareness of rights and responsibilities on pay.” He also stated that the Low Pay Commission will also be working hard to enforce a clamp down on non-compliance by employers of apprentices.

Andrew is a Commercial & Employment Law solicitor in Leicester. Our Solicitors in Leicester are experts in their fields and dedicated to quality client care. If you would like to find out more about our solicitors in Leicester please contact us.

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Andrew Robinson - Employment Law
Andrew Robinson - Employment Law
andrew.robinson@ehlsolicitors.co.uk 01509 212 108
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