News

Call for rise to mimimum wage to prevent poverty for low earners

Policy & Politics
The public services union Unison is calling for the National Minimum Wage to rise substantially in October 2012 to prevent millions of low-paid workers falling into poverty.

Their recommendations come ahead of the new National Minimum Wage rates for 2011/12, which will come into place next month.

The Union is also calling for the full NMW rate to begin at 16-years-old, rather than 21.

As of 1 October this year, the adult NMW rate (over 21-years-old) will increase by 15 pence to £6.08 an hour, the rate for 18-20-year-olds will increase by 6p to £4.98 an hour and for 16-17-year-olds it is to rise by 4p to £3.68 an hour.

The rate for apprentices, under or over 19-years-old and in the first year of their apprenticeship, will rise by 10p to £2.60 an hour.

However, Unison argues that in the ‘interests of fairness and simplicity’ the new NMW rates for all apprentices in the UK should rise from £2.60 an hour, as of October 2011, to match the normal rates for 18-21-year-olds.

The union’s submission to the Low Pay Commission, an independent body, which advises the Government on the National Minimum Wage (NMW), argues that the NMW should not be frozen or cut - or the economy will fail to recover.

Instead Unison recommends that the NMW be substantially increased in light of the cost of living in recent years and set at a rate to reflect the Living Wage, a minimum hourly rate, set independently,  which is necessary for a worker to meet basic needs such as housing, food and clothing.

Currently the Living Wage is set at £8.30 in London and £7.20 elsewhere, however Unison is calling for the rate to be put at £8 per hour for all UK workers.

Dave Prentis, Unison general secretary, said, ‘A freeze or cut in the minimum wage would not only hit poor families hard, it would be bad for business, as it will hit spending power and stunt growth and recovery. As inflation increases and governments cuts run deep, low paid workers are being driven into poverty. A small rise would be outstripped by the rising cost of essentials like food, fuel and transport. That is why Unison is calling for a substantial increase and a move towards a more realistic living wage of £8 an hour.
He added, ‘Those earning the least should not have to suffer the most because of the recession. We desperately need an increase in the minimum wage rise to restore the balance of fairness and to help to stimulate growth across the economy.’