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Monday, 30 September, 2002, 23:06 GMT 00:06 UK
UK minimum wage rises
Restaurant waiter laying a table.
Service sector workers make up the bulk of the low-paid.
Workers earning the UK's minimum wage are set to receive a 10 pence an hour rise..


Those receiving the minimum wage will be falling further behind during 2003

Richard Towers Low-Pay Unit director
The minimum wage is to be increased from �4.10 to �4.20 an hour, while the rate for workers aged 18 to 21 will also go up by 10p to �3.60 an hour.

Last October, the minimum wage went up by 40p and the government promised then that it would rise by another 10p if economic conditions allowed it.

But a low-pay action group has criticised the 10p rise, condemning it as nothing more than "crumbs for the poor".

Publicity

The Department for Trade and Industry (DTI) is to run a four week press campaign to publicise the new rates.

UK's lowest paid jobs (women)
Bar staff
Launderers
Waitress
Kitchen hand
Catering assistant
Source: Low-Pay Unit
Workers are being encouraged to ring the minimum wage helpline on 0845 6000 678 or visit the website www.tiger.gov.uk if they believe they are being underpaid.

Employers who want more information on the rate rise can also call the helpline or log onto the website.

Falling behind

But the Low-Pay Unit said the increase was inadequate.

"The extra 10p represents only a 2.7% rise for the over 21's," Richard Towers, the unit's director, told BBC News Online.

UK's lowest paid jobs (men)
Kitchen porter
Check-out operator
Bar staff
Hotel porter
Source: Low-Pay Unit

"However, overall wage inflation in the UK is running at 3-4%.

"As a result, those receiving the minimum wage will be falling further behind during 2003."

Companies in the catering, leisure and cleaning sectors are the most likely to employ workers at or just above the minimum wage.

Mr Towers believes that tax payers ultimately pick up the tab for the UK's culture of low-pay.

"Low-paid workers have shorter, less healthy lives than those on a decent living wage," he said.

"Through benefits and the health service, tax payers are subsidising low-paid employees."

See also:

24 Sep 02 | Business
13 Sep 02 | Business
12 Aug 02 | Business
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