World Economy

UK to Raise Minimum Wage by 3%

UK to Raise Minimum Wage by 3%UK to Raise Minimum Wage by 3%

The UK government said it will increase the minimum wage and further boost apprentices’ pay as it seeks to rebuff opposition Labor Party assertions that it’s ignored the effect of a rising cost of living on the poorest families.

The 3 percent increase in the adult wage to 6.70 pounds ($10) an hour, jointly announced on Tuesday by Conservative Prime Minister David Cameron and his Liberal Democrat deputy, Nick Clegg, is the biggest since 2008 and will benefit more than 1.4 million people, Cameron’s office said in a statement. The changes will take effect in October. The increase is 10 times the current headline rate of inflation, Bloomberg said.

“At the heart of our long-term economic plan for Britain is a simple idea, that those who put in, should get out,” Cameron said in a statement. “This is a government that is on your side. It will mean more financial security for Britain’s families; and a better future for our country.”

A day before the government’s final budget before the May 7 election, Cameron’s Tories are neck and neck with Labor in polls that suggest neither party is set to win a majority. While the Conservatives are keen to rebuff Labor claims they only favor the wealthiest, the Liberal Democrats, whose vote share has dwindled since 2010, have sought to emphasize they bring fairness to their coalition partners’ policies.

The minimum wage paid to apprentices will rise by 20 percent to 3.30 pounds, while the rate paid to 16- and 17-year-olds will increase 2 percent to 3.87 pounds an hour, according to the statement.