Minimum wage rise 'remains way below inflation'

Posted by Craig Williams

Conditions for employees are still likely to be tough in the near future despite the government's recent decision to hike the minimum wage, an expert has said.

Last week (April 7th), the Conservative-Liberal Democrat alliance revealed it had accepted proposals from the Low Pay Commission, meaning as of October 1st 2011, the minimum hourly rate of pay adults can legally receive will be £6.08.

Meanwhile, people between the age of 18 and 20 will see the least they are eligible to earn rise to £4.98 per hour.

However, despite the fact that these measures are to be "welcomed", Chris Goulden, policy and research manager at the Joseph Rowntree Foundation, believes they will not be sufficient to cancel out the current gap between salaries and the cost of living in the UK.

He noted that "the rise is quite a long way below various measures of inflation", meaning that many may still find it tough to make ends meet.
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12/04/2011 16:54

News category: Employment

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