Minimum wage rises to £5.05 from 1 October

The minimum wage for adult workers will rise from £4.85 to £5.05 per hour from 1 October.

The statutory instrument containing this year’s increase to the minimum wage was laid before parliament today.

It details the following rises in minimum wage:


from £4.85 to £5.05 per hour for adult workers,


from £4.10 to £4.25 for younger workers (18-21),


the accommodation allowance increases from £3.75 to £3.90 per day

Ninety-five per cent of low-paid workers say a national minimum wage is very important to them and their families, according to a poll by retail union Usdaw.

However, employers have warned that Labour’s manifesto promise to raise the national minimum wage to £5.35 in October 2006 could lead to businesses reducing staff hours, cutting jobs and trimming back staff benefits.

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