National Minimum Wage increases

An above-inflation rise comes into effect and Government pledges to crack down on employers not paying it.

The adult National Minimum Wage has risen to £6.50 an hour, an above-inflation 3% increase on the previous hourly rate of £6.31.

The rate for 18- to 20-year-olds has risen from £5.03 to £5.13. The rate for under 18s has risen from £3.72 to £3.79 and for young apprentices and those in their first year of training it’s increased from £2.68 to £2.73.

However, it's the first real-terms increase in the Minimum Wage since 2008.

New figures from thinktank the Resolution Foundation show the number of people being paid Minimum Wage has doubled since it was introduced in 1999.

A record 1.2 million people are now paid the Minimum Wage with a further 1.3 million people earning within 50p an hour of it.

The Government has pledged a crackdown on employers who don’t pay the Minimum Wage, with the threat of fines up to £200,000.

Labour has pledged to increase the Minimum Wage to £8 if it wins power.