An increase to the minimum wage will come into force in April 2018, but the new top rate will only apply to workers over 25.
The TUC is calling for:
As the 21-24 rate is growing more slowly that the amount paid to older workers, TUC analysis reveals that the gap between the pay of people in this age group and those over 25 has widened by more than £400 a year.
The TUC published research last week that one in eight working people are skipping meals because they can’t afford to eat, and will also warn the LPC today that the proposed rise in the NMW will not be enough to combat in-work poverty.
The TUC argues that with high levels of employment and record corporate profits, employers can afford a strong increase in the minimum wage, and that the LPC should be bold in its recommendation of a new rate to government.
TUC General Secretary Frances O’Grady said:
On pay, the TUC wants to see:
- The TUC’s full evidence to the LPC (an independent body that advises the government about the minimum wage) is available at: https://www.tuc.org.uk/sites/default/files/LPCresponse17.pdf
- The NMW is currently:
Age |
Rate |
Aged 25 and over |
£7.50 |
Aged 21 to 24 |
£7.05 |
Aged 18 to 20 |
£5.60 |
Under 18 |
£4.05 |
Apprentice |
£3.50 |
- The gap between the rates for 21 to 24-year-olds and those over 25 was 25p in 2016 and 45p in 2017. On this measure the gap has widened by £416 per year.
- The real Living Wage is a widely supported voluntary standard based on a calculation of what workers need to live on. The current hourly rates are £9.75 in London and £8.45 in the rest of the UK. The independent Living Wage Foundation accredits employers who adopt the Living Wage.
- The NMW is enforced by HM Revenue and Customs, who have an official pay and work rights helpline: 0300 123 1100 and www.gov.uk/pay-and-work-rights
- The TUC research about workers skipping meals as they cannot afford food is available at: www.tuc.org.uk/news/1-8-workers-are-skipping-meals-make-ends-meet-tuc-mega-poll-finds
- All TUC press releases can be found at www.tuc.org.uk/media
- TUC Press Office on Twitter: @tucnews
Contacts:
Press Office T: 020 7467 1248 E: media@tuc.org.uk
Michael Pidgeon T: 020 7467 1372 M: 07717 531150 E: mpidgeon@tuc.org.uk
Alex Rossiter T: 020 7467 1285 M: 07887 572130 E: arossiter@tuc.org.uk
Tim Nichols T: 020 7467 1388 M: 07808 761844 E: tnichols@tuc.org.uk
Elly Gibson (Mon to Weds) T: 020 7467 1337 M: 07900 910624 E: egibson@tuc.org.uk
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