The minimum wage will rise from 1 October 2014. It will rise by 19p an hour to £6.50, while the rate for people between 18 and 20 will rise by 10p to £5.13 an hour and 16 and 17-year-olds will see their rate rise by 7p to £3.79. Apprentices will see their minimum pay increase 5p to £2.73 an hour. The government agreed to the Low Pay Commission’s recommendation for a 3 % increase in Britain’s minimum wage, this will be the first above-inflation increase in six years and providing the economy continues to improve there are plans for bigger increases in the future.
“This will benefit over one million workers on national minimum wage and marks the start of a welcome new phase in minimum wage policy,” said Business Secretary Vince Cable. Many have commented that this is a positive move towards addressing the extreme division between levels of pay between senior executives and the average levels of pay.
However, whilst some hail this as a new phase in our recovery, several employers’ organisations, the EEF, the CBI and the Forum of Private Business gave the recommendations a cautious welcome. The plans have not being universally well received as the increase still does not cover the 25% increase in cost of living that has hit everyone since the start of the economic crisis.
The last 12 months have certainly marked a new phase of growth for Howett Thorpe; indeed we anticipate there will be a marked increase for clients to effectively manage counter offers and predicted wage rises as the general job market continues to improve and the wage increase undoubtedly plays its part in influencing private sector wage deals. Dr Adam Marshall, executive director of policy British Chambers of Commerce, said: “… Companies feel more confident now when it comes to the question of pay…”
Howett Thorpe offers a personal and informed local service that provides a valuable insight into market trends and up to date salary information and importantly; how to attract and retain the best talent.
For additional insight regarding local salaries in the Surrey, Berkshire, Hampshire or Middlesex areas please contact your local office.