The Government has accepted the recommendations of the Low Pay Commission (LPC) regarding the adult and youth rates of the National Minimum Wage (NMW) payable for 2013/2014. However, the apprentice rate, which applies to apprentices under 19 or those over 19 and in the first year of their apprenticeship, will be increased rather than frozen as recommended by the LPC in order to continue to make apprenticeships attractive to young people. The LPC had based its recommendation on concerns about the level of compliance with the rate.
The following NMW rates will come into effect on 1 October 2013:
- the adult rate will increase by 12p to £6.31 an hour;
- the rate for 18-20 year olds will increase by 5p to £5.03 an hour;
- the rate for 16-17 year olds will increase by 4p to £3.72 an hour;
- the apprentice rate will increase by 3p to £2.68 an hour; and
- the accommodation offset increases from the current £4.82 to £4.91.
The Government is also planning to introduce tough new measures to tackle non-compliance issues across the board.