The British minimum wage goes up in October

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February 26, 2005 The British Prime Minister Tony Blair has announced that the minimum wage is to go up from GBP 4.85 per hour to GBP 5.05 per hour in October and GBP 5.35 per hour in October 2006. The minimum wage for 18-21 year-olds, the development minimum wage will also go up from GBP 4.10 per hour to GBP 4.25 per hour. The rises was a recommendation by the Low Pay Commission, a government organisation responsible in the minimum wage said that the minimum wage has increased the amount of jobs in the market.

The minimum wage started in the UK in 1998 as one of the election proposal of the Labour government and it started at GBP 3.60 per hour.

The Trade Union Congress said they welcome the rise, however they want the minimum wage to go up to GBP 6.00 per hour. The Confederation of British Industry called for a "pause year" on the minimum wage to assess the above inflation rises

Political speculators are says the announcement is to coincide with a possible general election in May this year.

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