The Government has published its response to the Low Pay Commission (LPC) recommendations. The Government has accepted that the following hourly rates for the national minimum wage (NMW) should increase in October 2015: (i) from £6.50 to £6.70 for adults; (ii) from £5.13 to £5.30 for the development rate that covers workers aged 18 to 20 years old; and (iii) from £3.79 to £3.87 for 16 to 17 year olds. The Government, however, has concluded that the apprentice rate should be £3.30 and not £2.80 as recommended. The new rate set by the Government is an increase of 57p an hour (21%) and is the largest ever increase in the NMW for apprentices, which will halve the gap with the 16-17 year olds. While not stated in the response, presumably this decision accords with the Government’s policy of promoting apprenticeships.

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