Worcester’s MP has welcomed the increase in the National Minimum Wage that comes into

force today with the first step towards a National Living Wage set out in the Summer Budget

and a record breaking increase in the Apprentice Minimum Wage.

 

The moves are the first step on a journey that will take the UK to a new higher pay

environment in which the minimum wage will rise to at least £9 per hour by 2020.

Today the National Minimum Wage for people over 25 rises 20p to £6.70 from £6.50 and the

Apprentice National Minimum Wage rises 57p to £3.30. The boost for apprentices is the

largest ever and means that those working 40 hours a week will now have £1,185 more in

their pay packet over the year.

 

The 3% increase in the adult rate is the biggest real increase since 2006 and moves the

NMW closer to the average wage than ever before. The new rate means that a full time

employee, working 40 hours, will see the largest cash increase in their annual pay packets

since 2008.

 

The announcements today come hot on the heals of the latest Asda Income Tracker which

showed that household disposable income had risen by more than 10% in the last year as

fuel and food prices have come down and take home pay has risen.

 

Business Secretary Sajid Javid said:

“As a one nation government we are making sure that every part of Britain benefits from our

growing economy and today more than 1.4 million of Britain’s lowest-paid workers will be

getting a well-deserved pay rise.”

 

“The increase for apprentices is the largest in history making sure that apprenticeships

remain an attractive option for young people. While the National Minimum Wage will see the

largest real-terms increase since 2007.”

 

From 1 October 2015:

 the adult rate will increase by 20 pence to £6.70 per hour

 the rate for 18 to 20 year olds will increase by 17 pence to £5.30 per hour

 the rate for 16 to 17 year olds will increase by 8 pence to £3.87 per hour

 the apprentice rate will increase by 57 pence to £3.30 per hour

Commenting on today’s changes, Robin Walker MP for Worcester said

“I am delighted that thousands of people in Worcester will be getting a pay rise from today

and this step, combined with the raising of the income tax threshold over time to the same

level as the minimum wage, will mean that millions will be substantially better off. Figures

from the Asda Income Tracker already show that take home pay has risen for millions and

that the UK economy is benefiting as a result. In order to make sure that we reap the

maximum benefit we need to keep driving skills and education, investment and research and

increasing the productivity of UK workers. By getting Government, education and business

to work together on this challenge I believe we can achieve something truly remarkable.”

“It used to be argued that a higher minimum wage would simply destroy jobs and in the past

my own party made the mistake of subscribing to that view. Having fostered the most

successful economic recovery of major Western nations and seen more jobs created in this

country than in the rest of Western Europe combined, we now have a remarkable

opportunity to show that we can increase jobs and pay at the same time. In order to do this

we need to keep improving the way in which we prepare people for the world of work and

help people to find jobs in which they can succeed and in this respect I particularly welcome

the focus on making apprenticeships pay.”

 

“These changes may seem small today but they are a big step in the right direction. When at

the end of this Parliament the minimum wage is almost 50% higher, unemployment remains

low and millions of people are paying less income on their hard earned wages, our country

will be better off and more productive. Of course many businesses are already recognising

the benefits of higher pay and I pay tribute to those such as Worcester City Council, Costa

coffee and Lidl who have already embraced this approach by becoming accredited living

wage employers. I hope we will see even more in the future.”

 

“It is remarkable to think that Labour campaigned at the last election for an £8 minimum

wage and this Conservative Government is setting out to deliver a £9 living wage instead. I

hope that we can do so in a way that continues to give the maximum number of people the

chance to work and gives them the maximum opportunity to enjoy the fruits of their labour.”

 

Notes to editors:

For full detail of the Government announcement on the Minimum Wage today see:

https://www.gov.uk/government/news/government-introduces-largest-ever-increase-to-

apprentices-wages

1. The Apprentice Rate applies to all apprentices in year 1 of an apprenticeship, and 16

to 18 year old apprentices in any year of an apprenticeship. The LPC recommended

that the new rate be set at £2.80 but the government has implemented a higher rate

of £3.30.

2. From April 2016, the government will introduce a new mandatory National Living

Wage (NLW) for workers aged 25 years and above, initially set at £7.20.

For the Asda Income Tracker and an analysis of disposable income see:

You can view the full report here.

The latest Asda Income Tracker, released last week, showed a welcome boost in disposable

income for UK families.

Families on average had £191 a week of discretionary income in August 2015, up by an

extra £18 a week (10.7%) on August 2014.

Fuel prices dropped by 12.9%, giving rugby fans on the road across the country a reason to

celebrate. The cost of stocking cupboards and fridges for a big night in falls, thanks to a

2.4% drop in food and drink prices.