Coventry North East MP, Bob Ainsworth welcomes the announcement by Patricia Hewitt, Secretary of State for Trade and Industry, that the minimum wage is to be increased to £4.85 per hour, and that a new minimum wage will be implemented to protect 16-17 year old workers.

Bob Ainsworth said:

“The minimum wage is a flagship Labour Party policy, it has made a real difference to thousands of people’s lives in Coventry North East and millions of people’s lives across the country.

“Raising the existing adult and youth minimum wage levels will bring a real change to these people’s lives.  The new rate for 16-17 year olds means protection of a minimum wage is now extended to more people than ever before.  Younger workers are more likely to be exploited by unscrupulous bosses so I am pleased they will have the protection of a new minimum wage.”

These are the recommendations in the low pay commission’s 2004 report, which the Government is accepting.  They will take effect from 1 October 2004.

• The adult rate of minimum wage should be increased from the present hourly rate of £4.50 to £4.85 in October 2004.
• The youth rate (which applies to 18-21 year olds) should be increased from the present hourly rate of £3.80 to £4.10 in October 2004.
• The Government should introduce a minimum wage for 16-17 year olds, set at an hourly rate of £3.00 in October 2004.

Apprentices aged 16-17 and participants on specified pre-apprenticeship programmes should be exempt from the new rate.

This announcement means that 1.6 million workers will benefit from an hourly rate of £4.85 while young people between 16-17 will be given protection from exploitation for the first time.