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Jamie Lawrence

Wagestream

Insights Director

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Summary of National Minimum Wage changes from October 1st

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Thanks to Hollie Ryan, Associate at Charles Russell LLP, for preparing this summary.

The new 2013/14 rates are as follows:

  • Standard rate – £6.31 per hour (a 12p increase from £6.19, an increase of 1.9%)
  • 18 – 20 year olds – £5.03 per hour (a 5p increase from £4.98)
  • Under 18s – £3.72 per hour (a 4p increase from £3.68)
  • Apprentices – £2.68 per hour (a 3p increase from £2.65)

“The increase follows the recommendations made by the Low Pay Commission in April 2013 to increase the National Minimum Wage. The Government opted to increase apprentice rates despite recommendations from the Low Pay Commission that they should be frozen. The decision to increase apprentice rates was thought to have arisen from the concern that some apprentices were not receiving the minimum wage, though the Government announced that the increase was in fact aimed at making apprenticeships more attractive to younger people.

“As economic recovery begins to emerge, trade unions have expressed a need for further increases to bring employee wages into line with inflation and afford them a share of economic growth, though the new rates could add further anguish to those businesses already struggling in these financially challenging times.  The rates will no doubt fuel further debate amongst politicians as the suggestion of a living wage surfaces once again. “

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Jamie Lawrence

Insights Director

Read more from Jamie Lawrence
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