The Prime Minister and the Deputy Prime Minister have announced that the National Minimum Wage (NMW) for the adults will be increased by 3 % to a rate of £6.70 per hour. This will be on effect from 1 October 2015.

They have also announced the increase in the National Minimum Wage for apprentices by 57 pence an hour to a rate of £3.30 which is the largest ever increase in the National Minimum Wage for apprentices.

The government implemented a higher rate with the intention that apprenticeships will deliver a wage that is comparable to other choices for work.

It is also introducing a new digital apprenticeship voucher for putting employers in control of funding for the apprenticeships. Moreover, this will also give the employers a purchasing power over the government contribution to apprenticeship funding.

Along with the increase in the wage for the adults and apprentices, there are other increments taking place from 1 October 2015.
• An increment of 17 pence to the rate of £5.30 per hour for 18 to 20 year old
• An increment of 8 pence to the rate of £3.87 per hour for 16 to 17 year old
• An increment from the current £5.08 to £5.35 for the accommodation offset

Prime Minister David Cameron said “At the heart of our long-term economic plan for Britain is a simple idea – that those who put in, should get out; that hard work is really rewarded; that the benefits of recovery are truly national. That’s what today’s announcement is all about – saying to hardworking taxpayers, this is a government that is on your side. It will mean more financial security for Britain’s families; and a better future for our country.”

Deputy Prime Minister Nick Clegg said “This is just one of the many ways in which we’ve created a fairer society whilst building a stronger economy. If you work hard, this government is behind you all the way. Whether you’re on low pay or starting your dream career through an apprenticeship, you will get more support to help you go further and faster.”

Since 2007, this is the largest real-terms increase in the National Minimum Wage. This increment plans to benefit more than 1.4 million of Britain’s lowest paid workers.