Increases in National Minimum Wage welcomed

By: John Harding, partner

The Government's acceptance of the Low Pay Commission's recommendations to increase the adult rate of the National Minimum Wage to £6.70 from October 2015 is to be welcomed,  together with the increase in the Personal Allowance to £10,600 from April. Both of these changes will help hard-working families.

The increase in the level of the National Minimum Wage represents the largest real-terms increase since 2006.  There was also an impressive 20% increase in the rate for apprentices. which is to be especially welcomed. This, together with the abolition from April 2015 of Employers' NIC for under 21 year olds, will benefit 1.5 million young people.

This is a further boost to youth employment and will enable employers to invest the savings they make in National Insurance in training and development or even more jobs. It will benefit employers and young employees alike, and make it easier for employers, of all sizes, to take on apprentices, who serve a vital role in bridging the skills gaps and growing the UK economy.