In brief...: Minimum wage rise lifts women

Oct 3 2008

Over a million workers will benefit from an increase in the national minimum wage this week, with women making up two-thirds of those affected, according to a new study.

The TUC said the rise from £5.52 to £5.73 an hour will help reduce the gender pay gap and save the taxpayer £245million in benefit payments.

The 3.8 per cent rise is the ninth increase since the statutory rate was introduced by the Labour Government in 1998.

Introducing a minimum wage has not led to any significant job cuts despite predictions from some business lobbyists, said the union organisation.

The TUC said the Low Pay Commission should recommend a "significant" increase in the figure for next year.

General secretary Brendan Barber said: "The rise in the minimum wage will help thousands of families but the low-paid face a high inflation rate as they spend a much greater proportion of their income on food and energy where prices have rocketed.

"Honest employers do suffer, however, when dodgy ones fail to pay the minimum wage."

The minimum wage for 18 to 22-year-olds increased on Wednesday from £4.60 to £4.77 an hour and for 16 and 17-year-olds from £3.40 to £3.53.