Minimum wage set to rise

Almost one million people are set to benefit from plans to increase the national minimum wage.

The Department for Business, Enterprise and Regulatory Reform has increased the minimum wage for those over the age of 22 by seven pence an hour.

For 16 to 17-year-olds, the wage will go up by four pence an hour and 18 to 21-year-olds will receive a six pence increase in minimum pay.

The standard minimum wage for adults will now be £5.80 an hour.

The changes, which are in line with recommendations from the independent Low Pay Commission, will come into force in October.

Business secretary Lord backed the difference the minimum wage has made to the UK's lowest paid workers.

"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," he said.

"The government agrees with this assessment and has accepted the recommendations for these new rates to take effect in October."

And the minister also accepted a LPC recommendation to extend the adult boundary of the minimum wage to 21-year-olds from October 2010.

Chairman of the LPC George Bain said: "We believe that the Low Pay Commission's recommendations are appropriate for this economic climate.

"They reflect the need to protect low-paid workers' jobs as well as their earnings.

"This was a difficult year for the Commission but our evidence-based approach led to another unanimous report. I am delighted that the government has again accepted our recommendations on the rates this year."