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| Version 1 | Version 2 |
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| National minimum wage to rise to £6.50 | National minimum wage to rise to £6.50 |
| (about 4 hours later) | |
| The minimum wage will rise by 3% to £6.50 an hour in October, Vince Cable, the business secretary, has announced. | |
| He said on Wednesday the government would accept the recommendation of the Low Pay Commission (LPC) for an above-inflation increase of 19p. | He said on Wednesday the government would accept the recommendation of the Low Pay Commission (LPC) for an above-inflation increase of 19p. |
| The news comes after David Cameron last week stole his Lib Dem colleague's thunder by confirming he was in favour of recommendations for a 3% increase wage and pledged to "restore its value" in the longer term. | |
| George Osborne, the chancellor, has said he ultimately wants it to rise to £7. | George Osborne, the chancellor, has said he ultimately wants it to rise to £7. |
| The rise to £6.50 an hour from October is expected to be the first of several above-inflation rises after a Treasury report said the minimum wage should be restored to pre-crisis levels. | The rise to £6.50 an hour from October is expected to be the first of several above-inflation rises after a Treasury report said the minimum wage should be restored to pre-crisis levels. |
| Cable said 1 million people would see their annual pay increase by as much as £355 in the first real-terms cash rise since 2008. | Cable said 1 million people would see their annual pay increase by as much as £355 in the first real-terms cash rise since 2008. |
| As recommended by the LPC, the adult rate will increase about 3% from £6.31 to £6.50 an hour, the rate for 18- to 20-year-olds will rise 2% from £5.03 to £5.13 and the rate for 16- to 17-year-olds will go up 2% £3.72 to £3.79. There will also be a 2% increase in the rate for apprentices, from £2.68 to £2.73. | |
| Cable said: "The recommendations I have accepted today mean that low-paid workers will enjoy the biggest cash increase in their take-home pay since 2008. This will benefit over 1 million workers on national minimum wage and marks the start of a welcome new phase in minimum wage policy. | Cable said: "The recommendations I have accepted today mean that low-paid workers will enjoy the biggest cash increase in their take-home pay since 2008. This will benefit over 1 million workers on national minimum wage and marks the start of a welcome new phase in minimum wage policy. |
| "The LPC's new forward guidance gives us a much better understanding of how an economic recovery can be translated into faster and significant increases in the national minimum wage for low-paid workers, without costing jobs. | "The LPC's new forward guidance gives us a much better understanding of how an economic recovery can be translated into faster and significant increases in the national minimum wage for low-paid workers, without costing jobs. |
| Cable urged businesses to consider how "all staff – not just those on the minimum wage – can enjoy the benefits of recovery". | Cable urged businesses to consider how "all staff – not just those on the minimum wage – can enjoy the benefits of recovery". |