Modest Rise In National Minimum Wage Welcomed

The small increase of 1.2% in the national minimum wage was welcomed by the trades unions. It was a relief more than anything else as there had been pressure from parts of business to freeze it. The Low Pay Commission announced the NMW will increase by 7 pence to £5.80 per hour from October 2009. The increase for younger people aged 18-21 will be 6 pence to £4.83 and for 16-17 year olds the minimum will rise 4 pence to £3.57. It was also welcomed by the British Retail Consortium and the CBI who said the moderate increase was right to protect jobs in these difficult times. The BRC had suggested to the Low Pay Commission that any increase should not be above 1.5%. They also suggested it might increase job opportunities.