Raising National Minimum Wage to £6.50 a “sensible” move, says CBI

The CBI has welcomed the government’s decision to increase the National Minimum Wage by 19p an hour to £6.50 in October this year.

The National Minimum Wage rates from 1st October 2014, as recommended by the Low Pay Commission (LPC) will be: a 19p (3%) increase in the adult rate (from £6.31 to £6.50 per hour); a 10p (2%) increase in the rate for 18 to 20 year olds (from £5.03 to £5.13 per hour); a 7p (2%) increase in the rate for 16 to 17 year olds (from £3.72 to £3.79 per hour); and a 5p (2%) increase in the rate for apprentices (from £2.68 to £2.73 per hour).

Katja Hall, CBI, Chief Policy Director said: “The Government’s decision to accept the Low Pay Commission’s recommendation of a 3% rise in the national minimum wage is a sensible one and will not put jobs at risk.

“This rise will strike the right balance between protecting jobs whilst ensuring those on minimum wage benefit as the economic recovery takes hold.”