Minimum-wage increased by 2% from October
The minimum wage will increase by 2% from October 2010, or 13p, coming in at £5.93 an hour. This increase is in line with the recommendation of the Low Pay Commission but is well behind the retail price index which is the common measurements of inflation. Recently the UK government reminded the Low Pay Commission that it also had an obligation to consider the competitiveness of small to medium-size companies in the UK and the long-term prospects for employment.
While initially there was some concern about the introduction of a minimum wage in the UK it does seem to have settled down fairly well and created something of a benchmark. While there will always be companies against an annual increase in the minimum wage in reality there should be scope to increase competitiveness and business levels as the economy improves.
It is understood that around 1 million people will benefit from the increase in the minimum wage which will in due course assist the UK government in tackling the benefits problem which has blighted the UK social security system for many years. When you consider that we recently saw the "London Living Wage" increased by 3.3% to £7.85 this perfectly reflects the difference in the cost of living in London against anywhere else in the UK.
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