MP Welcomes Rise in National Minimum Wage
9th March 2007
Aberavon MP, Dr Hywel Francis, has welcomed the announcement that more than a million workers, two thirds of them low paid women will benefit from a rise in the National Minimum Wage from £5.35 to £5.52 an hour from October.
There will also be increases in the National Minimum Wage from £4.45 to £4.60 for 18-21 year olds, and from £3.30 to £3.40 for 16-17 year olds.
The announcement from Secretary of State for Trade and Industry, Rt Hon Alistair Darling MP, means the minimum wage has gone up by almost 30% more than inflation since it was introduced in 1999, with the number of jobs increasing by almost 2m in the same time. Since October last year the minimum wage for adults, combined with Working Tax credits and other benefits, has guaranteed an income of at least £268 a week for families with one child and one full-time worker.
Dr Francis said,
"I welcome this rise in the National Minimum Wage which will benefit over a million workers, two thirds of them women. The Minimum Wage helps to ensure that workers are paid fairly for the work that they do. It benefits families and plays an important role in the modern economy"
In January new measures came into force to back the minimum wage with tougher enforcement. These include:
- A typical penalty for underpaying a single worker is now more than £200.
- Employers who fail to pay the minimum wage can face prosecution, risking a criminal record and a £5,000 fine.
- The Government has already targeted hairdressing and childcare sectors for enforcement. The next sector will be hotels, followed by hospitality.
Since 1999 the Government has helped tens of thousands of workers recover £22.6 million in unpaid wages.
Notes for editors
1. The Low Pay Commission was established following the National Minimum Wage Act 1998 to advise the Government about the National Minimum Wage. It is made up of representatives from all sides of industry. For more details, and copies of the report: see http://www.lowpay.gov.uk/
2. The Commission is asked to monitor, evaluate and review the impact of the minimum wage with particular reference to the effect on pay, employment and competitiveness in the low paying sectors and small firms; the effect on different groups of workers, including different age groups, ethnic minorities, women and people with disabilities, the effect on pay structures.
3 The National Minimum Wage, introduced on 1 April 1999, forms part of the Government's overall strategy to establish fairness in the workplace and to make work pay by ensuring that all workers received at least the hourly minimum rates set.
4. The DTI estimates that more than 1 million workers stand to benefit from the October 2007 uprating of the National Minimum Wage (NMW). This estimate is based on 1p pay bands from the ONS' Annual Survey of Hours and Earnings (ASHE) 2006, and takes account of actual and forecast average earnings growth between April 2006 and October 2007.
5. The Secretary of State today announced the appointment of two new Low Pay Commissioners, Professor Stephen Machin and Professor Robert Elliott, who will take over from Professor William Brown and Professor David Metcalf.
6. The National Minimum Wage helpline number is 0845 6000 678. As well as receiving complaints about non-payment of the minimum wage, the helpline takes calls for advice and information.
