Government to ‘continue with minimum wage despite lobbying’

The government says it will continue with the living wage and the National Minimum Wage despite lobbying from leading trade groups.

The announcement follows reports that 16 trade bodies had written to Prime Minister Theresa May asking her to reconsider the policy in the face of a potential economic slowdown following the Brexit vote.

A government spokesman said: “The prime minister has been clear that we want to build an economy that works for everyone, where people up and down the country have a share in the benefits of the economy, and making sure that people earn a decent wage for a day’s work is an important part of that.”

The new rates for the National Minimum Wage (NMW) came into effect on 1 October. The new rates are:

• £6.95 per hour – 21-24 years old
• £5.55 per hour – 18 – 20 years old
• £4.00 per hour – 16-17 years old
• £3.40 for apprentices under 19 or 19 or over who are in the first year of apprenticeship.

The National Living Wage for workers over the age of 25 came into effect and remains at £7.20. It will be reviewed annually.

A Treasury spokesman said: “Since April the new national living wage has been boosting the wages of the lowest paid. The independent Low Pay Commission will advise on the path future increases should take, taking into account the state of the economy.”

Please contact Jackie Cuneen if you would like more information about the issues raised in this article or any aspect of employment law.