UK Government Announce Smallest Increase In Minimum Wage
In a move that has been applauded by industry leaders, the UK Government have today announced some of the smallest ever increases in the minimum wage. Is this a ploy to curry favour with industry leaders ahead of an election, or a sign that the economy is expected to slow down?
The new hourly rates are as follows :-
· Adult Rate £5.52 (+17p)
· Age Group 18 - 21 Rate £4.60 (+15p)
· Age Group 16 - 17 Rate £3.40 (+10p)
As the increases are below the current rate of inflation, the gap between the rich and poor is set to widen even further - a move that has angered the Unions. Quite what the Unions can do about this is unclear, as many who are caught in the minimum wage trap can ill afford to jeopardise their employment, no matter what the rate of pay.
The situation looks even more disturbing when taking into account some of the massive bonuses and pay increases recently announced in the “City†- with the Financial Sector one of the main benefactors. As the number of the UK population below the poverty line continues to grow, there are concerns that many will be pushed into bankruptcy or IVAs in the short term.
The number of workers on the minimum wage has increased markedly over the last couple of years, and this recent increase is hardly likely to lift the gloom for the employees involved. There are also rumours that state benefits may come under further threat in the near future, as the Government strive to control the ever increasing welfare budget of the UK.
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