You are here: Home - Saving & Banking - News -

Minimum wage increase not bold enough says TUC

Written by:
The Government has come under criticism for failing to increase the national minimum wage enough to offset the effects of inflation on low-paid workers.

Plans to increase the minimum wage by 1.8% for adult workers, and a freeze for workers under 20 is being criticised by the TUC as not enough to ease financial strains on low-paid workers in real terms.

The rate of inflation is currently running at 2.9% (RPI).

Brendan Barber, TUC General Secretary, said: “While we are pleased that government has rejected the siren calls of some employers to freeze the minimum wage for adult workers and apprentices, these increases are still far below inflation and will leave the lowest paid facing a real terms cut.

“These new rates are a particular blow to younger people who will face the biggest hit on their living standards.

“There is no evidence that the minimum wage has had an adverse impact on young people’s employment so it is hard to see the logic behind their pay freeze.”

The TUC also highlights that the rate increase is not high enough to help cash-strapped families struggling to meet the basic costs of living.

Barber added: “We need a bolder increase next year otherwise the real incomes of minimum wage workers will continue to fall, along with consumer demand.”

From October 2012:

• The adult rate will increase by 11 pence to £6.19 an hour
• The rate for 18-20 year olds will remain at £4.98 an hour
• The rate for 16-17 year olds will remain at £3.68 an hour
• The rate for apprentices will increase by 5 pence to £2.65 an hour and
• The accommodation offset will increase by 9 pence to £4.82 per day.


Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
100,000 homebuyers use bank of mum and dad

Financial help from family members has helped over 100,000 first time buyers get on the property ladder between 2008 and...