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£7 Per Hour National Minimum Wage

Monday, January 5, 2015

GMB Call On Low Pay Commission To Recommend National Minimum Wage Of At Least £7 Per Hour To Make Up Ground Lost Since 2006

It is time for the Low Pay Commission to do what it says on the tin – “fight for the low paid” says GMB.

GMB commented on reports that the Low Pay Commission is split on whether to recommend uprating the national minimum wage by 50p per hour to £7 per hour from October 2014 to make up ground lost to inflation since 2006. See notes to editors for report on Press Association.

Paul Kenny, GMB General Secretary, said “There are bucket loads of evidence that an uplift of at least 50p per hour would help the low paid and start to stimulate the economy and that all the big firms including the retailers can afford it.

There is no justification for the national minimum wage not keeping up with inflation. The Low Pay Commission should recommend a rate of at least £7 per hour from October 2014 to make up the ground lost since 2006.

It is time for the Low Pay Commission to do what it says on the tin – “fight for the low paid”.”

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Contact: Kamaljeet Jandu 07956 237178 or Martin Smith 07974 251722 or Cath Speight 07506 711925 or 07921 2898880

Notes to editors

Report on Press Association.

Body ponders 50p minimum wage rise 05 Jan 2015 - 00:01

By Alan Jones, Press Association Industrial Correspondent

Members of the Low Pay Commission appear to be split on whether to recommend a 50p-an-hour rise in the national minimum wage to £7.

With wages set to be one of the main issues at the general election in May, the next decision by the commission on what it believes the new rate should be is eagerly awaited.

The commissioners, including representatives of business, unions and academics, will meet in the coming weeks to decide what to recommend to the Government.

The adult minimum wage increased from £6.31 an hour to £6.50 last October and a new rate will come into force in October this year.

But ministers are expected to decide before the general election what the new statutory minimum will be.

Labour has already pledged to raise the minimum wage to £8 an hour over the course of the next parliament if it wins power in May, while Chancellor George Osborne has suggested it could increase to £7 this year as the economy improves.

The biggest business group, the CBI, said its research showed that more than two out of five firms intended to raise pay at the same rate as RPI inflation this year.

It is understood that some sections of industry would accept a £7-an-hour minimum wage but others, including retail, would be opposed.

The minimum wage has not increased in line with inflation in six of the eight years since 2006, only keeping pace with price rises in 2009 and 2014.

Analysts have calculated that if the minimum wage had kept up with inflation since 2006, the adult rate would now be £6.99 an hour.

Ministers are expected to receive the commission's recommendation in February before deciding what the new figure should be.

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