National minimum wage 2013/2014: Adult rate to increase by 1.9% to £6.31 per hour

NMW1314.JPGThe UK national minimum wage adult rate increases by 1.9%, when the national minimum wage rates for 2013/2014 come into effect on Tuesday 1 October 2013.

This will take the national minimum wage adult rate from its current 2012/2013 level of £6.19 per hour to £6.31 per hour for 2013/2014.

The increase was announced this morning (15 April 2013) by Business Secretary Vince Cable.

Here we report full details of the national minimum wage rates for 2013/2014.



National minimum wage rates for 2013/2014

The national minimum wage rates for 2013/2014 are as follows:

  • The national minimum wage adult rate increases to £6.31 per hour for 2013/2014. This represents an increase of 1.9% from the 2012/2013 national minimum wage adult rate, which currently stands at £6.19 per hour (from 1 October 2012 to 30 September 2013).
  • The 2013/2014 national minimum wage adult rate (at £6.31 per hour) is therefore set 12p per hour higher than the 2012/2013 rate of £6.19 per hour.

The national minimum wage rates paid to younger workers are also increased for 2013/2014, having been frozen for 2012/2013:

  • The national minimum wage “youth development rate” (for workers aged 18 to 20) rises by 5p (or by 1%) to £5.03 per hour for 2013/2014 (up from £4.98 per hour for 2012/2013).
  • The national minimum wage youth rate (for workers aged 16 and 17) rises by 4p (or by 1%) to £3.72 per hour for 2013/2014 (up from £3.68 per hour for 2012/2013).

Other national minimum wage increases announced today include the following:

  • The apprentice minimum wage rate rises from £2.65 per hour to £2.68 per hour in 2013/2014 (an increase of 1%, or of 3p per hour).
  • The accommodation offset increases from by 9p from £4.82 to £4.91.

Coalition Government to target non-compliance with apprentice rates, says Cable

Cable said that the Coalition Government had decided not to accept the Low Pay Commission’s recommendation that the apprentice rate should be frozen for 2013/2014.

He also announced that the Coalition Government plans to target employers that are failing to pay the apprentice rate where required. Cable said:

We are accepting [the LPC's] recommendations for the adult and youth National Minimum Wage rate increases, which I am confident strikes this balance. However, there is worrying evidence that a significant number of employers are not paying apprentices the relevant minimum wage rate. Apprenticeships are at the heart of our goal to support a stronger economy, and so it is important to continue to make them attractive to young people. Therefore, I am not taking forward the LPC’s recommendation to freeze the apprenticeship rate due to non-compliance, but instead am raising it in line with the youth rates. We are working on a series of tough new measures to ensure we tackle non-compliance issues across the board.

The Gov.uk site gives some detail of how this will be achieved:

The government will be working with employers, apprentices and training providers to improve awareness of rights and responsibilities on pay. Along with this, it will be undertaking focused enforcement work to clamp down on non-compliance by employers of apprentices.

‘Wage-led growth must be part of the recovery,’ says TUC’s Frances O’Grady

TUC General Secretary Frances O’Grady issued the following statement in response to the announcement of the national minimum wage rates for 2013/2014:

Boosting the incomes of the low paid goes straight into the economy and wage-led growth must be part of the recovery so we would have liked to have seen minimum wage rates go up further today, even if the government has rightly rejected calls for a freeze. But we are pleased that ministers have increased the apprenticeship rate. This sends a positive signal about the importance of apprentices. We will continue to press ministers for more action to ensure the minimum wage is properly enforced – particularly for apprentices where there is considerable evidence that many miss out. It is time to get tough with wage-cheat employers who break this law. And we will continue to urge the many employers who can afford it to implement a full living wage for their staff.’

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