SHOPWORKERS union Usdaw has welcomed the coalition Government's decision to increase all three rates of the national minimum wage.

The Government followed the recommendations of the Low Pay Commission in putting the rates up.

The new rates, which will come into force on October 1, 2010, are:

  • £5.93 per hour for workers aged 21 and over - a 2.2% increase on the current £5.80 rate.
  • £4.92 per hour for 18-20 year olds - a 1.9% increase on the current £4.83 rate.
  • £3.64 per hour for 16-17 year olds - a 2% increase on the current £3.57 rate.

The Government has said that adult rate of the National Minimum Wage should start at 21 years of age rather than 22 and announced an apprentice minimum wage of £2.50 per hour.

The new rate will apply to those apprentices who are under 19 or those that are aged 19 and over but in the first year of their apprenticeship.

John Hannett, Usdaw General Secretary, said: “This is very welcome news for the millions of low paid workers who rely on the National Minimum Wage to help them maintain a decent standard of living.

“The Government should now make sure low paid workers see the benefit of the increase by avoiding changes to the tax and benefits system in today's budget that would worsen their living standards.”