Further substantial increases needed to national minimum wage, says TUC

Commenting on the new national minimum wage (NMW) rates that come into force today (Wednesday), TUC General Secretary Frances O’Grady said:

“It is good news to see the worst paid adult workers receiving a pay release above inflation for the first time for six years. But it’s a muted celebration because the minimum wage would be worth at least £7 today had it kept up with rising prices.

“Politicians from all parties and many business leaders now agree that the minimum wage should increase far more rapidly. Britain needs a pay rise and a wages-led recovery is the best chance we have of sustaining economic growth and restoring living standards.”

NOTES TO EDITORS:

National minimum wage rates from 1 October 2014

- The Low Pay Commission estimates that between 1.1 and 1.3 million adults will benefit from today’s increase. The TUC estimates that around 60 per cent of the beneficiaries will be women.

- The national minimum wage is actively enforced. Contact the official Pay and Work Rights Helpline for further information (P&WR helpline number: 0800 917 2368; https://www.gov.uk/pay-and-work-rights-helpline)

- An open letter from a group of senior business leaders published on 18 September 2014 stated: “Now, as the economy recovers, we believe the minimum wage should rise faster than it has in the recent past. A stronger minimum wage will benefit businesses, improve public finances, and help tackle low pay. The economy is growing again. But we must ensure that all employees are benefiting from the recovery – especially the lowest paid in society who find it hardest to make ends meet.”

- Signatories to the letter included Sir George Bain, the former chair of the Low Pay Commission; Alan Buckle, the former deputy chairman of KPMG; Jeremy Bennett, chief executive officer for Europe, Middle East and Africa at Nomura Holdings; Chris Britton, founder and partner at B&B Investment Partners and former chief executive, Findus Group; Sir Ian Cheshire, chief executive, Kingfisher; Iain Ferguson, chairman, Stobart Group; Steve Marshall, executive chairman, Balfour Beatty; Kevin Mcgrath, chairman, M&M Property Asset Management; Robert Stephenson-Padron, managing director, Penrose Care; and Craig Wilson, managing director, Hewlett Packard Enterprise Services, UK.

- All TUC press releases can be found at www.tuc.org.uk

- Follow the TUC on Twitter: @tucnews

- On Saturday 18 October the TUC is organising Britain Needs a Pay Rise – a national march and rally in London to call for an economic recovery that delivers for everyone, and for fair wages to help end the living standards squeeze. For more information on the campaign go to http://www.tuc.org.uk/economic-issues/britain-needs-pay-rise