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Minimum wage boost for workers
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28 January 2008
The TUC said the rise on Wednesday (October 1) from £5.52 to £5.73 an hour will help reduce the gender pay gap and save the taxpayer £245 million in benefit payments.
The 3.8% rise is the ninth increase since the statutory rate was introduced by the Labour Government in 1998, giving an increase of 59%, compared to a 44% growth in average earnings over the same period.
Introducing a minimum wage has not led to any significant job cuts despite predictions from some business lobbyists, said the union organisation.
The TUC said the Low Pay Commission should recommend a "significant" increase in the figure for next year.
General secretary Brendan Barber said: "The increase in the minimum wage will help thousands of families but the low-paid face a high inflation rate as they spend a much greater proportion of their income on food and energy where prices have rocketed.
"It is entirely predictable that some employer groups will say that the minimum wage increase will threaten jobs, yet it has helped millions without significant job losses. The Low Pay Commission should robustly reject employer scare-mongering and recognise the higher inflation faced by the low paid when it shortly sets next year's increase.
"Honest employers do suffer, however, when dodgy ones fail to pay the minimum wage. Dodging the minimum wage also leaves the UK's vulnerable workers in even deeper poverty - and we all pay the price for this.
"Tougher enforcement penalties and greater funding for HM Revenue and Customs are the best ways to crackdown on these minimum wage cheats."
The minimum wage for 18 to 22-year-olds will increase on Wednesday from £4.60 to £4.77 an hour and for 16 and 17-year-olds from £3.40 to £3.53.
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