TUC: national minimum wage uprating must rise by 3.5% per hour in 2010/2011

With regard to its proposed 3.5% rise in the national minimum wage adult rate for 2010/2011, the TUC argues that such an increase would not only help ensure that low-paid workers do not get left behind once the expected resurgence in average earnings growth kicks in, but it would also help combat low pay in general.

The TUC says: "[I]f we are to win the battle against low pay, the new national minimum wage rate needs to go beyond just keeping pace with average earnings and deliver a 'social justice' premium." The TUC also argues that such an increase would help address the gender pay gap, as it estimates that two-thirds (66%) of the one million or so low-paid workers covered by the national minimum wage are female.

TUC proposals for three age-based hourly rates for apprentices

The Government has asked the LPC to consider introducing a national minimum wage rate for apprentices, with its recommendations for 2010/2011 scheduled to be announced in the 2010 LPC report, which is expected early next year.

The TUC's submission to the LPC proposes three new age-based national minimum wage bands for apprentices (external website), "based on a discount of 10 to 15% from the existing national minimum wage rates."

Apprentices aged over 19 and in the first 12 months of employment or under the age of 19 are currently excluded from the national minimum wage (subscription required). The TUC argues that "apprentices who are already entitled to the national minimum wage (apprentices aged 19 and over who have already completed the first year of their course) must not be included in the new national minimum wage apprentice rates as this could make them worse off."

The TUC's proposed apprentice rates for 2010/2011 are as follows:

• apprentices aged 16 and 17 should be paid a minimum rate set between £3.00 per hour and £3.18 per hour;
• apprentices aged 18 to 20 should be paid a minimum rate set between £4.05 per hour and £4.29 per hour (although these rates should only be paid for the first year of apprenticeship for those aged 19 and 20); and
• apprentices aged 21 and above should be paid a minimum rate set between £4.87 per hour and £5.15 per hour (these rates should apply for the first year of apprenticeship only);

TUC General Secretary Brendan Barber says: "By making sure that all apprentices are entitled to an hourly minimum wage, the Low Pay Commission can prevent exploitation, improve the quality of apprenticeships and help to ensure that more people complete their course."

The CBI has previously argued that "any new minimum wage for apprentices must be set at a cautious level".

Last month, Thursday 1 October 2009 saw the 2009/2010 national minimum wage increase (subscription required) come into effect, with the adult rate rising by 1.2%, to £5.80 per hour. The 2010/2011 national minimum wage uprating will come into effect on 1 October 2010.

• See also: What can we expect from the 2010/2011 national minimum wage increase?