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Businesses 'content' with minimum wage increases

Practice group: Employment law


24 July 2008

A significant number of businesses are content with the planned increases in the national minimum wage, an industry organisation has said.

The new rates effective from October this year will see adult workers over the age of 22 entitled to £5.73 per hour, up from £5.52.

The Federation of Small Businesses said most small or medium enterprises are likely to support the fact recent changes to the rates "have been pretty much in line with inflation".

Federation spokesman Simon Briault said: "We, as an organisation, are in favour of the minimum wage, because it basically means that the minority of dishonest employers are not able to undercut the vast majority, who pay fairly."

Other increases arriving in October will see the rates for young workers aged 18 to 21 increase from £4.60 to £4.77 and minimum pay for 16 to 18-year-olds rise from £3.40 to £3.53.

Mr Briault added previous minimum wage increases had been well above the rate of inflation, but said the low pay commission "seems to have come round to a more stable approach".

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