Minimum Wage rates for April published
The Low Pay Commission has launched its report National Minimum Wage 2017
in which it reports its recommendations for increases in National Minimum Wage from April.
In last week's Budget speech, the Chancellor Philip Hammond agreed to meet the recommendations in this report, so these will become obligatory from April 2018.
From April new rates will be:
National Living Wage - increase of 33p or 4.4 % to £7.83 per hour
National Minimum Wage 21-24 year olds - increase of 33p or 4.7 % to £7.38
National Minimum Wage 18-20 year olds - increase of 30p or 5.4 % to £5.90
National Minimum Wage 16-17 year olds - increase of 15p or 3.7 % to £4.20
Apprentice Rate - increase of 20p or 5.7 % to £3.70
Purnima Tanuku OBE, Chief Executive of NDNA who is quoted within the Low Pay Commission’s National Minimum Wage 2017 report
(on page 59 section 2.63) said: “These wage increases are obviously good news for our lowest paid workers.
“However, the childcare sector is particularly badly affected in its ability to meet this obligation because the Government investment in its scheme which offers parents ‘free’ childcare is woefully insufficient.
“The average nursery gets paid an hourly rate per three and four-year-old of just £4.37 in England, with similar poor rates paid in Scotland and Wales.
“Rather than the new rates from April reflecting these increases in staffing costs, they are staying the same for the vast majority of providers and in some cases being decreased.
“For nurseries, staff wages is their biggest bill so this will have a huge impact on their sustainability. There is no flexibility because providers have to adhere to strict child to adult ratios and also need to maintain differentials in pay for higher qualified practitioners.
“If the Government requires all employers including nurseries to pay workers these fair wages, they need to make sure this is reflected in the hourly rates paid to the sector for funded childcare.”