The Government has accepted the Low Pay Commission’s (LPC) recommendations for this year’s adult and youth national minimum wage (NMW) rates. However, the Government has concluded that the apprentice rate should be increased rather than frozen as recommended by the LPC.
From 1 October 2013:
- the adult rate will increase from £6.19 by 12p to £6.31 an hour;
- the rate for 18-20 year olds will increase from £4.98 by 5p to £5.03 an hour;
- the rate for 16-17 year olds will increase from £3.68 by 4p to £3.72 an hour ;
- the apprentice rate will increase from £2.65 by 3p to £2.68 an hour; and
- the accommodation offset will increase from £4.82 to £4.91.
The LPC recommended that the apprentice rate should not be raised due to evidence that a significant number of employers are not paying apprentices the NMW. However, Business Secretary, Vince Cable, said that the apprentice rate would instead be raised in line with the youth rates so that apprenticeships continue to be attractive to young people. He also stated that the Government is ‘working on a series of tough new measures to ensure we tackle non-compliance issues across the board’.
Paul Burton, Employment Solicitor, says “The Government has ‘noted’ another LPC recommendation to ensure that contracts issued by public bodies which commission the provision of social care require at least the NMW to be paid, in the same way they may require compliance with other aspects of the law, such as health and safety legislation.”
For a free initial meeting please call 01202 499255 and Kate or Paul will be happy to discuss any questions you may have.
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