Minimum wage rises to £6.50 an hour

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The national minimum wage (NMW) for adults will rise by 19p an hour to £6.50 on 1 October 2014, the Business Secretary Vince Cable has announced.

The Government has agreed to follow the three per cent rise proposed by the Low Pay Commission last month. This will be the first time in six years that the NMW has increased above the rate of inflation.

“The recommendations I have accepted mean that low-paid workers will enjoy the biggest cash increase in their take-home pay since 2008,” said Mr Cable.

Other NMW rates will increase by two per cent from 1 October 2014:

  • the rate for 18 to 20-year-olds will rise by 10p to £5.13 an hour
  • the rate for 16 and 17-year-olds will increase by 7p to £3.79 an hour
  • the rate for apprentices will increase by 5p to £2.73 an hour.


Katja Hall, chief policy director at the Confederation of British Industry, said the decision was a “sensible one and will not put jobs at risk.”

Dr Adam Marshall, executive director of policy and external affairs at the British Chambers of Commerce, said he was pleased that the Government has accepted the “evidence-based approach […] rather than succumb to politically attractive alternatives.”