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Minimum wage increase gets mixed reception
Business digest: Businesses remain cautious about change which remains below rate of inflation
The minimum wage in Britain will be £6.08 from October this year, following a decision to raise its current level by 2.5 per cent.
The Low Pay Commission also recommended that young people get a lower increase, bringing minimum wage for 18- to 20-year-olds to £4.98, and 16- to 17-year olds to £3.68. This is supposed to encourage employers to offer young people their first jobs.
Business secretary Vince Cable insisted that 890,000 of Britain's lowest-paid workers would benefit from the change.
But the British Chambers of Commerce said it was the "wrong increase, at the wrong time". The rise is still far below inflation levels, which are expected to reach five per cent this year.
Read a full report at the Financial Times (subscription). ·
