Minimum wage set to increase by 1.2%

The minimum wage is to increase by 7p per hour for adults above the age 21, the government has announced.

From October, the statutory minimum hourly wage will be £5.80 an hour for those above the age of 21. For those aged 18-21 it will be £4.83 and £3.57 for 16-17-year-olds – an increase of 6p and 4p per hour respectively.

Business groups had urged the government not to increase the minimum wage during the recession.

However, Dani Novick, managing director of Mercury Search and Selection, said that there are relatively few people in the industry at minimum wage levels and, at around 1.2%, the increase is unlikely to make a huge difference to employees.

She added: "As a wider issue both employers and employees need to consider value whatever the wage level. It's important that we have a well-trained and skilled workforce focused on being as productive and efficient as possible so that employers can be competitive.  

"Anything which hinders the competitiveness of an employer is clearly not in the interests of the employees."