The Government is to increase the National Minimum Wage for adults by 20p (3%) to £6.70 per hour from October, and has accepted the Low Pay Commission further recommendations:
- an increase of 3.3 per cent to £5.30 in the Youth Development Rate, which applies to 18-20 year olds
- an increase of 2.2 per cent to £3.87 in the 16-17 Year Old Rate
- an increase of 2.6 per cent to £2.80 in the Apprentice Rate, which applies to all apprentices in year one of an apprenticeship, and 16-18 year old apprentices in any year of an apprenticeship
ALMR welcomes increases
The ALMR has welcomed the increase and called upon Government to continue to support businesses’ investments in their staff, but sounded a note of caution over the large rise in the apprenticeship rate.
ALMR Chief Executive Kate Nicholls said: “We are glad that the Government has accepted most of the Low Pay Commission’s recommendations and recognised the very real pressures being placed on businesses in terms of labour costs and tightening margins, reflected by the modest increases in most rates. We are also pleased to see the importance of keeping youth rates affordable for businesses recognised, but the increase in the apprenticeship rate may be detrimental to the excellent work done in increasing training and skill levels.
Increased support for apprentices needed
“Keeping wages affordable is a good first step but we would also like to see increased support, particularly for adult apprentices. The rise in the apprentice rate will increase the need for fully-funded apprenticeships for 19-24 year olds and we are also calling for additional funding for over-25s to encourage those people who have not been through higher education to discover the range of careers our sector offers.”
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