British government consider minimum wage increase by 20p

The national minimum wage in the UK should be increased by 20p an hour to £6.70, the Low Pay Commission is recommending.

The Government is to study the suggestion and make a decision later, possibly in next month’s Budget.

The recommendations for the 2015 rates are £6.70 (adult rate) £5.30 (18-20 rate); £3.87 (16-17 rate) and £2.80 (apprenticeship rate).

Business Secretary Vince Cable said: “Today the Low Pay Commission have made their recommendations to government that the adult national minimum wage should rise by just over 3% to £6.70 an hour from October 2015.

“This would represent an annual pay rise of £416 for a full time worker on the minimum wage. If this recommendation were accepted, the value of the minimum wage would be higher than when we came to office in 2010 and we are now making good progress towards restoring the value it lost during the financial crisis.

“I will now study these recommendations and consult my Cabinet colleagues with a view to announcing the final rates in the next few weeks.”

Mr Cable said the Low Pay Commission had to strike a "delicate balance" between what is fair for workers and what is affordable for employers, without costing jobs.