National Minimum Wage Increase Comes into Force Today

The National Minimum Wage will rise from £6.31 to £6.50 today (October 1st) for employees over the age of 21 (an increase of 3%).

In addition to the change in the adult rate, there are also changes to the youth and development rates of the minimum wage. From today, the 18-20 year old rate will rise from £5.03 to £5.13, the 16-17 rate from £3.72 to £3.79 and the apprentice rate from £2.68 to £2.73.

Research conducted by ACS has shown that 56% of retailers believe that increases in the minimum wage have made their business less competitive, while more than half have indicated that they have laid off staff in the past year (of which 71% attributed to increased employment costs). As part of the 2014 National Minimum Wage survey, 80% of retailers strongly agreed or agreed that the rate should be frozen.

ACS recently submitted written evidence to the Low Pay Commission, urging the Commission to fully consider the impact that rises in the national minimum wage rate would have on businesses.


The Low Pay Commission is currently reviewing its recommendations for the 2015 National Minimum Wage rate.