Minimum Wage and London Living Wage Update

 

The National Minimum Wage (NMW) rates are reviewed each year by the Low Pay Commission and from 1st October 2011 rates will be:

Based on a 38 hour week the minimum for an apprentice will go up to £98.80 from £95 a week or an minimal increase of £1.52 per week for 16-17 year old not on an apprenticeship.(£139.84 from £138.32).

 

The increase for young people may be small but there had been calls for the rate to be frozen or even reduced. The British Chamber of Commerce had argued that a freeze or reduction was essential to encourage employers to on young workers and combat rapidly rising youth unemployment.

 

TUC general secretary Brendan Barber said the “modest” rise should stimulate local economies. “There will be room for much more generous increases in future years once the economy begins to recover” he added.

 

However, with consumer price inflation at 4.4% the Unite union said that a 2.5% increase in the adult rate would do little to help low-paid workers.

London Living Wage

 

The London Living Wage (LLW) was introduced in 2005 to provide a reliable margin above the NMW to stop working Londoners from falling into poverty. Employers are not obliged to pay the LLW but the CitizensUK Living Wage Campaign attempts to persuade them.

 

The current LLW rate was set last June at £7.85 per hour. Employers such as Barclays Bank, KPMG, HSBC and PriceWaterhouse Coopers have signed up as well as ten Local Authorities and ten London Universities. High street retailers have been slower to commit but cosmetics chain Lush recently promised to pay LLW wage to all its employees in the capital.

 

CitizensUK spokesman Matthew Bolton said: "This is a landmark move for our campaign. We've lifted 10,000 people out of poverty through the living wage, but all have been cleaners and catering contract workers. Lush is the first retailer to sign up.” He added “"we similarly hope the Lush initiative will provoke retailers like Marks & Spencer, John Lewis and Body Shop to become flagship living wage champions as well".
 

Who pays what in London (from Evening Standard article on 20th April 2011):

 

The National Minimum Wage (NMW) rates are reviewed each year by the Low Pay Commission and from 1st October 2011 rates will be:

Based on a 38 hour week the minimum for an apprentice will go up to £98.80 from £95 a week or an minimal increase of £1.52 per week for 16-17 year old not on an apprenticeship.(£139.84 from £138.32).

 

The increase for young people may be small but there had been calls for the rate to be frozen or even reduced. The British Chamber of Commerce had argued that a freeze or reduction was essential to encourage employers to on young workers and combat rapidly rising youth unemployment.

 

TUC general secretary Brendan Barber said the “modest” rise should stimulate local economies. “There will be room for much more generous increases in future years once the economy begins to recover” he added.

 

However, with consumer price inflation at 4.4% the Unite union said that a 2.5% increase in the adult rate would do little to help low-paid workers.

London Living Wage

 

The London Living Wage (LLW) was introduced in 2005 to provide a reliable margin above the NMW to stop working Londoners from falling into poverty. Employers are not obliged to pay the LLW but the CitizensUK Living Wage Campaign attempts to persuade them.

 

The current LLW rate was set last June at £7.85 per hour. Employers such as Barclays Bank, KPMG, HSBC and PriceWaterhouse Coopers have signed up as well as ten Local Authorities and ten London Universities. High street retailers have been slower to commit but cosmetics chain Lush recently promised to pay LLW wage to all its employees in the capital.

 

CitizensUK spokesman Matthew Bolton said: "This is a landmark move for our campaign. We've lifted 10,000 people out of poverty through the living wage, but all have been cleaners and catering contract workers. Lush is the first retailer to sign up.” He added “"we similarly hope the Lush initiative will provoke retailers like Marks & Spencer, John Lewis and Body Shop to become flagship living wage champions as well".
 

Who pays what in London (from Evening Standard article on 20th April 2011):