Minimum wage hike boost

Sunday 28th September 2008, 9:25AM BST

One million to benefit from minimum wage hike, study saysA study by the Trades Union Congress (TUC) says up to one million workers will benefit from minimum wage laws coming into force this Wednesday.

From October 1st, employers will have to pay adults over the age of 22 an hourly rate of £5.73 an hour, up from £5.52. Workers aged between 18 and 22 will be entitled to an hourly rate of £4.77 in comparison to the previous £4.60 an hour.

Those in the 16 to 17 age group will also receive an hourly pay of £3.53 an hour, up from £3.40 an hour.

The TUC says those benefiting from higher pay are likely to be workers in the retail, hotels, catering, bars, textile manufacturing, hairdressing, cleaning, security, agriculture and food processing sectors. The union adds that two-thirds of the prospective beneficiaries are likely to be women.

TUC general secretary Brendan Barber commented: “The increase in the minimum wage will help thousands of families but the low-paid face a high inflation rate as they spend a much greater proportion of their income on food and energy where prices have rocketed.

“It is entirely predictable that some employer groups will say that the minimum wage increase will threaten jobs, yet it has helped millions without significant job losses.

“The Low Pay Commission should robustly reject employer scare-mongering and recognise the higher inflation faced by the low paid when it shortly sets next year’s increase.”

The minimum wage was introduced on April 1st, 1999 and has been increased every October since then. Employers choosing to pay less than the ordained amounts can be fined up to £5,000 per offence under the National Minimum Wage Act.