New rates to come into force in October this year. A leading business group has criticised the government?s plans to raise the National Minimum Wage (NMW) rate by 15 pence an hour in October this year, calling the move ?misguided?. According to the British Chambers of Commerce (BCC), the changes to the NMW ?is the wrong increase, at the wrong time? and that the increase ?will be a barrier to job creation, and ultimately economic recovery?. The government has today accepted recommendations from the Low Pay Commission (LPC) for this year?s NMW rates, increasing the rate for adult workers from œ5.93 to œ6.08 an hour and raising the youth rate, for 18 to 20-year olds, by six pence to œ4.98 an hour. The move will benefit nearly one million workers, but is likely to put a strain on businesses, according to David Frost BCC director-general, who said that ?it?s clear from speaking to businesses that a significant number are having to freeze wages in 2011?. However, the business secretary Vince Cable has advocated the move saying “more than 890,000 of Britain?s lowest-paid workers will gain from these changes. They are appropriate – reflecting the current economic uncertainty while at the same time protecting the UK?s lowest-paid workers.? Furthermore, the Confederation of British Industry (CBI) has supporting the ?cautious approach?, the government has taken in raising rates. Its deputy director-general, Dr Neil Bentley, said that ?This moderate increase strikes the right balance during a period of economic uncertainty. ?It means that workers on the minimum wage will not fall behind the rest of the workforce in terms of pay rises. A larger rise would have hit businesses hard and could have put many lower paid jobs on the line.? For more information please click the following link: ¯

Stuart Masters - Director at TFMC
Stuart Masters

Stuart has spent almost 20 years in accounting with a significant amount of time focused on Outsourcing and the provision of bookkeeping and financial management information for businesses.

Specialties: Bookkeeping, Management Accounts, Accounts Outsourcing, Business Development, Business Planning, Year End Accounts.