Minimum wage increases by 7p
Tuesday 12th May 2009, 10:19AM BST.
The minimum wage it to increase by 7p to £5.80, the government has announced.
The increase will come into effect from October.
Business leaders had previously warned that some small firms would not be able to cope with a rise in the midst of a recession.
And the low pay commission recommended that the government put a freeze on the minimum wage last week.
However, Brendan Barber, general secretary of the Trades Union Congress (TUC), backed the change.
“It is not surprising that business organisations are saying an increase in the minimum wage will threaten jobs and that it should be frozen during the recession,” he said.
“The same employer groups warned us ten years ago that introducing the minimum wage would destroy jobs.
“In fact it has been one of this government’s greatest successes, and the minimum wage has improved the living standards of thousands of families across the UK without any adverse side effects.”
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