November 02, 2010
Minimum wage employees throughout England and Wales could receive a bumper increase in their pay packet next year.
The Trades Union Congress (TUC) is expected to argue for a rise in the national minimum wage (NMW) later this month, and will tell the Low Pay Commission (LPC) that raising the adult NMW by 21p will be beneficial to the nation as a whole.
The LPC, which advises the Government on the NMW, is currently considering the rates for the period from October 2011 to September 2012 and the TUC is expected to demand a 3.5% rise in the adult NMW, claiming such an increase is both “sensible and affordable”.
In its submission to the LPC the TUC will argue that:
- The 21p increase would benefit nearly one million workers and help address the gender pay gap,
- GDP growth has now returned to pre-recession levels and, despite the cuts in Government spending, is forecast to improve throughout 2011 and 2012.
- An increase in the NMW is required to ensure that the earnings of low paid workers do not fall behind the rest of the country.
- Increasing the NMW encourages people into work and boosts consumer spending
“The minimum wage has already helped hundreds of thousands of families without any negative side effects,” said TUC General Secretary, Brendan Barber.
“Modest economic growth has now returned and is set to continue, although the road to economic recovery is likely to be bumpy. A rise in the minimum wage is needed to ensure that working families are not left in poverty, and most business organisations now agree that an increase of some sort would be affordable.”
The LPC’s decision is expected over the coming months.
