24 February 2015

  |  CBI Press Team


CBI comments on National Minimum Wage rates

The CBI commented on the Low Pay Commission’s recommendations on the National Minimum Wage rates from October 2015.

CBI comments on National Minimum Wage rates

Reflecting the improving health of the economy, the LPC has recommended that:

The adult rate should increase by 3% from £6.50 to £6.70 an hour. The youth rates should increase by 3.3%p to £5.30 per hour for 18 to 20 year olds, by 2.2% to £3.87 for 16 to 17 year olds and by 2.5% to £2.80 for apprentices.

Katja Hall, CBI Deputy Director-General, said:

“The LPC has struck a careful balance. As the economic recovery cements, the Commission has reconciled a desire to reflect this in pay packets while recognising that productivity growth – the key to sustainable pay rises – remains weak.

“We welcome the commitment to review next year’s rise if the improved business environment doesn’t materialise.

“The National Minimum Wage has been one of the most successful policies of our time thanks to the independent recommendations of the Commission, helping many low-paid workers without damaging their job prospects.

“Any artificial increase due to political expediency will help no-one and ultimately damage one of the most successful government policies in recent years.”