The government has announced that the national minimum wage will be increased from October this year. Adults can expect an additional 12p an hour, bringing the new minimum to £6.31, while 18-to-20-year-olds will receive an additional 5p an hour bringing the new minimum to £5.03. The independent Low Pay Commission recommended that the government froze the rate for apprentices, however it has been confirmed that there will be an increase of 3p to £2.68 an hour. The increases are below current inflation levels, leaving many business owners concerned about costs. Dr Adam Marshall, the BCC’s director of policy, said: “While the pressures of inflation are affecting many people, including the lowest-paid, the scale of this rise adds significantly to business costs, most of all by contributing to broader pay inflation. It will also make some employers less inclined to hire additional members of staff.” The British Chambers of Commerce also agreed saying that the increase in the adult rate would add to the cost pressures of businesses. However, The Trades Union Congress general secretary Frances O’Grady welcomed the increases saying: “Boosting the incomes of the low-paid goes straight into the economy and wage-led growth must be part of the recovery, so we would have liked to have seen minimum wage rates go up further today, even if the government has rightly rejected calls for a freeze.” The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article. Setfords Solicitors are a national full service law firm, with employment solicitors in Bath and across the country.