Paul Sellers
The National Minimum Wage (NMW) rates will increase again on Saturday 1 October. We have strong arguments for a more generous increase, especially in these time of relatively high inflation, but we should perhaps also just take a moment to celebrate the fact that every increase that has been achieved has been fought for by the trade union movement. The Low Pay Commission (LPC) estimates that the latest rise will benefit around 890,000 employees – certainly worth a quick cheer.
The rise will put a bit of extra cash in the pockets of the UK’s lowest-paid workers at a time when they are feeling very squeezed, which is worth a cheer,but the increase will have to be bolder next year.
- NMW rates from October 2011
|
|
Current rate |
Oct 2011 |
|
Adults |
£5.93 |
£6.08 |
|
18 to 20-year-olds |
£4.92 |
£4.98 |
|
16 and 17-year-olds |
£3.64 |
£3.68 |
|
Apprentice rate (under the age of 19 plus older apprentices in the first year of their course) |
£2.50 |
£2.60 |
Cuts in public services and benefits are hitting the working poor the hardest and this increase is not enough to protect them from falling living standards.
An increase that is set at the highest level possible without causing net job losses would push more money into the economy, as research suggests that minimum wage workers spend 100 per cent of any rate increases.
The LPC also says that the latest increase should benefit the public finances by £230 million as tax and national insurance rates increase and the benefits bill falls. It is important that employers pay their share at a time we are fighting cuts in public finances.
Its also worth who gets the National Minimum Wage, as this helps us to see that it has so far been a socially progressive instrument – and we believe that there is still more potential to be fulfilled.
Minimum Wage employee jobs 2010
|
Employee group |
Index of NMW incidence |
Employee group |
Index of NMW incidence |
|
Men |
0.71 |
Ethnic minorities |
1.40 |
|
All employees of working age |
1.00 |
Migrant workers |
1.40 |
|
Women |
1.23 |
Young workers aged 18-24 |
1.56 |
|
Young workers aged 16-17 |
1.35 |
Workers with no qualifications |
3.01 |
Derived from LPC report 2011, p22, fig 2.5. Based on LFS figures.
NMW jobs by location 2010
|
location |
Percent employee jobs NMW |
location |
Percent employee jobs NMW |
|
Northern Ireland |
6.4 |
UK |
4.2 |
|
North East |
5.9 |
England |
4.1 |
|
North West |
5.3 |
Eastern |
4.0 |
|
East Midlands |
5.2 |
Scotland |
3.9 |
|
West Midlands |
5.2 |
South West |
3.8 |
|
Wales |
5.1 |
South East |
3.1 |
|
Yorks and Humber |
4.8 |
London |
2.2 |
Source: LPC report 2010, p21
Number and proportion of NMW jobs by industry
|
industry |
Number of NMW jobs (thousands) |
Industry |
Per cent paid NMW |
|
Non-low paying industries |
303 |
Hairdressing |
28% |
|
hospitality |
245 |
Cleaning |
23% |
|
Retail |
231 |
Hospitality |
20% |
|
Cleaning |
64 |
childcare |
13% |
|
Social care |
58 |
Employment agencies |
11% |
|
Employment agencies |
51 |
Leisure travel and sport |
10% |
|
Leisure travel and sport |
40 |
Textiles |
10% |
|
Hairdressing |
24 |
Retail |
8% |
|
Food processing |
23 |
Social care |
7% |
|
childcare |
18 |
Agriculture |
7& |
|
agriculture |
8 |
Food processing |
6% |
|
textiles |
7 |
security |
5% |
|
security |
5 |
Non low-paying industries |
2% |
Derived from LPC report 2010, table 2.2.
