MP Welcomes Increase in Minimum Wage

Neil Gerrard, Labour MP for Walthamstow, has welcomed the Government’s decision to respond to the Low Pay Commission’s 2006 report by ensuring that 1.3 million workers will get a guaranteed pay rise in October 2006 when the National Minimum Wage increases. Over 90,000 people in London will benefit.

Mr Gerrard said “This latest rise in the minimum wage will help people on low pay, the majority of whom are low paid women. It's right that at a time when our economy is generally strong with nearly 2.4 million more jobs than 1997, that we continue to help those who get paid the least.”

“When the minimum wage was introduced it was opposed by other political parties. The Tories said that it would lead to job losses, and the Liberal Democrat Treasury spokesperson said it was misconceived, and later described increases as dangerous. The fact is that it has been of real importance to low paid workers, and is one of the steps taken to help people out of poverty. I would still like to see the introduction of the ‘living wage’ in London to take account of higher living costs, but there is no doubt that the minimum wage has helped, and it hasn’t had any of the negative effects which were predicted.”

• The adult rate will rise from £5.05 to £5.35 an hour

• The youth rate for 18-21 year-olds will rise from £4.25 to £4.45 an hour

• The rate for 16-17 year old workers will rise from £3.00 to £3.30 an hour

October 2006

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