The national minimum wage will increase by 20p an hour to £6.70 from October, the Government has announced.
The rates – which represent the largest real-terms increase since 2008 - were recommended by the Low Pay Commission in February.
However, the Government did not accept its recommendation for apprentices, which will increase by 57p an hour to £3.30 – a £20% rise, representing the largest ever increase for apprentices. The Low Pay Commission had recommended that the apprentice rate should increase by 2.6% to £2.80.
The Government said it will launch a consultation with businesses on the future of the National Minimum Wage rate for apprentices and introduce a new digital apprenticeship voucher, to simplify the process for employers and give them the “purchasing power” over the government contribution to apprenticeship funding.
It will involve employers registering their details on a system being developed by the Skills Funding Agency, which will then work out a discounted rate at which employers can purchase training. The business will then be able to pass on the voucher code to the provider that is delivering training for their apprentice.
Prime Minister David Cameron said: “At the heart of our long-term economic plan for Britain is a simple idea – that those who put in, should get out; that hard work is really rewarded; that the benefits of recovery are truly national.
“That’s what today’s announcement is all about – saying to hardworking taxpayers, this is a government that is on your side. It will mean more financial security for Britain’s families; and a better future for our country.”
David Norgrove, chair of the Low Pay Commission, welcomed the “headline rates” but said he was disappointed the government did not accept its recommendation on the level of the apprentice rate.
“We based our judgement on a careful assessment of the evidence, seeking to benefit apprentices while also protecting the supply of places,” he said.
