Minimum wage expected to rise
Tony Blair is today expected to announce that the minimum wage will rise beyond the symbolic £5 mark.
The Low Pay Commission – which is due to report at the end of February – is believed to have recommended that the minimum wage rises to £5.05 by the end of this year.
The exact details of the rise, including the level paid to workers under the age 18 or 21 is not yet known.
The national minimum wage currently stands at £4.85 for those over 21, and £4.10 for those aged 18 to 21.
Mr Blair is expected to make the announcement at his monthly press conference in Downing Street, with simultaneous events in Scotland, Wales and Belfast.
Unions have continuously campaigned for a significant raise and are sure to greet the announcement with delight.
Tony Woodley, general secretary of the T&G said last night that: “Thousands of low paid workers will benefit and Labour voters will welcome the Government’s continued commitment to the minimum wage”.
He added: “We hope that a third term Labour government would instigate further increases above the rate of inflation so that we can get rid of poverty pay once and for all.”
Business though will be less enthusiastic as they believe that a further raise risks damaging economic competitiveness.
