Minimum wage to increase
Tony Blair today announced that from October this year the minimum wage will increase to £5.05 an hour for those over 21, with a provisional rise to £5.35 expected in October 2006.
Meanwhile, for those between 18 and 21, the wage is set to rise to £4.25 an hour from October this year, with a further rise to £4.45 expected by the same time next year.
The increases come on the back of recommendations by the Low Pay Commission, which found that some businesses had found it difficult to meet the last two significant rises in the wage.
The commission's chairman, Adair Turner, is quoted as saying, "We have therefore recommended only a slight increase above average earnings, and concentrated it in the second year to allow business more time to absorb the impact."
Commenting on the rise, the Prime Minister suggested that he wished to see the minimum wage as a "symbol of decency and fairness". It's also likely to be a symbol of his general election campaign, which by sheer coincidence is ongoing.
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