The government has announced that the national minimum wage will rise by 7p to £5.80 an hour beginning in October 2010, a year after the last national increase of 21p.
The rise has been approved despite the concerns of the British Chambers of Commerce (BCC) who in December stated that the minimum wage should not be increased until the UK's economic situation had significantly improved.
Under the government's new rates, 18 to 21-year-olds will also see an increase of 6p from £4.77 to £4.83 and the rate for 16 and 17-year olds will go up by 4p from £3.53 to £3.57.
Commenting on the announcement, business secretary Lord Mandelson said:
"The Low Pay Commission has carefully examined the latest economic data before making their recommendations on the minimum wage rate, balancing the needs of workers and businesses in the current economic climate.
The government agrees with this assessment and has accepted the recommendations for these new rates to take effect in October."
