Employers warned over minimum wage increase

The national minimum wage will rise to £6.31 for adults from October, the government has announced

This represents a 12 pence increase - well below the current rate of inflation. Those between the ages of 18 and 20 will receive a 5 pence rise to £5.03, while the minimum wage for apprentices will rise by 3 pence to £2.68.

The Low Pay Commission had recommended that the rate for apprentices should be frozen. but Mr Cable said: “There is worrying evidence that a significant number of employers are not paying apprentices the relevant minimum wage rate.

“Apprenticeships are at the heart of our goal to support a stronger economy, and so it is important to continue to make them attractive to young people. Therefore, I am not taking forward the Low Pay Commission’s recommendation to freeze the apprenticeship rate due to non-compliance, but instead am raising it in line with the youth rates.”

Mr Cable warned that employers of apprenticeships must pay the relevant minimum wage. He continued: “We are working on a series of tough new measures to ensure we tackle non-compliance issues across the board.”

It is criminal offence for an employer not to pay someone at least the relevant minimum wage.

Looking for employers’ liability cover?

As the UK’s biggest business insurance provider, we specialise in employers’ liability insurance. We’ll run you a quick, tailored quote right now online, and let you decide if we’re a good fit.

Start your quote