Minimum wage hike 20p to £6.70 a hour

The government also increased the apprenticeship rate by 57p to £3.30 an hour, more than recommended by its own low pay body the LPC.
It is the largest ever rise in the apprentice rate and chimes with the government’s commitment to increase numbers of apprentices entering the workforce.

In other changes, 18-to-20 year olds will get an extra 17p per hour while 16 and 17 year-olds will get an extra 8p. It is the largest real-terms increase since 2007, said the government in a statement.Also announced today are plans to create an online “wage accelerator”, which gives people access to pay information across different regions and different industries.

Business secretary Vince Cable said it would allow people to compare rates with their peers in different parts of the country.
Reacting to the news, Labour’s shadow business secretary Chuka Umunna said the Conservatives had fallen short of their pay promises.
In a statement he said: "This 20p rise falls far short of the £7 minimum wage which George Osborne promised over a year ago.

“Ministers have misled working families who have been left worse off. Where under David Cameron we’ve seen the value of the minimum wage eroded, we need a recovery for working people.”

But business group the CBI went the other way and questioned the government’s promise to remunerate apprentices above the recommended threshold.

“It's disappointing that the government has rejected the LPC’s recommendation on the apprentice rate,” said CBI director general John Cridland. "The National Minimum Wage has been one of the most successful policies of recent years thanks to the independence of the Commission – its politicisation is worrying.

"Employers must be in the driving seat when it comes to apprenticeship funding, so we welcome the announcement of the voucher system and await further details."