TUC – new minimum wage rates show government is delivering on promise “to make work pay”

Commenting on the announcement today (Tuesday) that the minimum wage will increase by 6.7% from this April, TUC General Secretary Paul Nowak said:

“The government is delivering on its promise to make work pay.

“This increase will make a real difference to the lowest paid in this country at a time when rents, bills and mortgages are high.

“Low-paid workers spend more of their earnings in their local economies – so boosting their pay packets will benefit local businesses too.

“The independent Low Pay Commission has looked at a range of economic evidence before making this recommendation. They know employers can absorb this increase.

“Every time the minimum wage goes up there are some voices who predict this will drive up unemployment. Every time they are wrong.”

On the decision to increase the minimum wage for 18-20 year olds – as part of the process to get rid of discriminatory age bands – Paul added:

“Young workers deserve to be paid the fair rate for the job.

“But hundreds of thousands of young workers are currently suffering a huge pay penalty – because of an outdated and discriminatory system.

“Young people up and down the country face the same cost of living pressures as everybody else. They shouldn’t be getting less for doing the same work as older workers.

“The government is right to tackle this injustice.”

The TUC estimates that more than 700,000 workers aged 18 to 20 across the UK currently face a pay penalty of around £2,400 a year (for those who work 52 weeks a year) as a result of being paid the lower rate.

The union body says the current tiered rates system should be “overhauled” so that young workers are paid fairly.