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Minimum wage frozen for under 21s

Tuesday, 20 March 20123 min read

The Government has announced plans to increase the minimum wage by 11p per hour while freezing the current wage levels for under 21s.

The national minimum wage will rise to £6.19 an hour in October but the level for 16 to 17 year olds will stay at £3.68 an hour and for 18 to 20 year olds at £4.98 an hour.

Business secretary Vince Cable said: "In these tough times freezing the youth rates has been a very hard decision – but raising the youth rates would have been of little value to young people if it meant it was harder for them to get a job in the long run."

John Longworth, director general of the British Chambers of Commerce, said it was "disappointed" with the decision to raise the minimum wage.

"While the pressures of inflation are hurting many people, especially the lowest-paid, this decision adds significantly to the cost of doing business, and feeds wage inflation at higher levels," he said.