THE largest real-terms increase in the national minimum wage since the financial crash is announced today by David Cameron and Nick Clegg, benefiting 1.4m of Britain's lowest paid workers, more than 100,000 of whom are in Scotland.
From October, the NMW adult rate will rise by three per cent from £6.50 to £6.70 an hour; the rate for 18 to 20-year-olds will also increase by three per cent from £5.13 to £5.30 an hour.
Just 24 hours before the last Budget ahead of the General Election, Downing Street further revealed the NMW for apprentices will increase by 57p an hour to £3.30.
This will be the largest hike in this category and will halve the gap with the rate for 16 to 17-year-olds, which will be £3.87 an hour up from £3.79; an increase of two per cent.
In addition, the Government is to launch a consultation with businesses on the future of the NMW rate for apprentices.
The increases largely reflect the recommendations, made in February, by the Low Pay Commission, although it suggested an increase in the apprentices' rate to £2.80, a rise of 2.6 per cent; the Government intends to up it by 20 per cent.
"At the heart of our long-term economic plan for Britain is a simple idea: that those who put in, should get out; that hard work is really rewarded; that the benefits of recovery are truly national," said David Cameron.
"That's what today's announcement is all about; saying to hardworking taxpayers, this is a government that is on your side. It will mean more financial security for Britain's families; and a better future for our country," insisted the Prime Minister
Nick Clegg, his Liberal Democrat deputy, added: "This is just one of the many ways in which we've created a fairer society whilst building a stronger economy."
But Chuka Umunna for Labour pointed out the 20p rise fell far short of the £7 minimum wage Chancellor George Osborne promised more than a year ago.
"Ministers have misled working families, who have been left worse off," declared the Shadow Business Secretary, who said Labour would raise the NMW to £8 an hour by 2020.
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