The Low Pay Commission has recommended that the adult minimum wage should be increased by 3% on 1 October 2014, from £6.31 to £6.50.
The Executive summary of the Low Pay Commission 2014 report stated that this could increase the number of jobs covered by the minimum wage by more than a third to around 1.25 million.
The government is expected to publish the full report during the next few weeks.
David Norgrove, chair of the Low Pay Commission, said: “We have had to balance the risk of recommending more than business and the economy can afford, bearing in mind the pressures on low-paying sectors and small firms, against the risk of doing too little to start to restore the real value of the earnings of the lowest paid.
“We do believe, however, that the economic recovery should this year allow an increase in the real value of the minimum wage, the first increase for at least five years.
“Provided the economy continues to improve, we expect to recommend further progressive real increases in the value of the minimum wage, restoring and then surpassing its previous highest level, so that 2014 will mark the start of a new phase – of bigger increases than in recent years – in the work of the commission.”
I have worked for a fairly large company for nearly eight years and in that time have not even had a pond an hour pay rise. I get ten pence over the minimum wage and work for 30 hr contract. The company gets bigger and richer while I am getting poorer what with rent rises etc. UN ACCEPTABLE!!
what a despicable bunch of people these low loives on the low pay commsion are, just looked up what they all earn so no wonder they only gave a insulting 3%. should have just kicked the workers in the face instead
Once again the government are faced with a very difficult dilema here.
If they increase the NMW by 3% they risk increasing inflation – thus wiping out a rise in real terms. The majority of NMW jobs in the UK are in manufacturing or service industries – if employers / organisations see their costs rise by 3% to cover this they will need to increase the price to the end consumer too.
Its a no win situation !
everyone is entitled to a decent rate of pay.if people had a good rate of pay they wouldnt need to claim top up benefits and working would pay.working people should be rewarded for going out to work terrible to think a lot of people are worse off if they work.a lot needs to be done to help with child care costs for working people people who dont work shouldnt get free childcare.if the minimum wage was decent more people would pay tax and national insurance thus helping the economy
Anonymous – I agree that people deserve a decent wage for the work they do – however if you increase wages then the value of that wage will fall in terms of the goods and services it can buy.
Most low paid jobs in the UK are in retail or the service industry – if you increase costs here by putting up wages you increase the price of goods to the consumer (often those on the lower wages) meaning any rise is effectively wiped out. Its a really delicate balance thats very hard to get right !
Work should pay for people but the ‘safety net’ of benefits and tax credits is very hard to unravel – any government that tries to do so is usually criticised so again its difficult to do.
One thing I do disagree with you on however is help with childcare costs – having children is a lifestyle choice and it shouldnt fall to others to help you fund this. Gone are the days when people shared the burden as ‘the younger generation will be working to pay our pensions’ – this isnt the case anymore and I cannot help but think we would be living in a fairer and more prosperous society if people were held responsible for budgetting and paying for their own choices rather than expecting others to subsidise them !
Will monthly payed benefit from this increase as the cost of life has gone up the same for everyone.