Minimum wage rise not enough

An increase of 10p an hour in the national minimum wage is still not enough, say unions, which are campaigning for an hourly rate of £5.

But the desired increase is more likely to come through negotiations with large companies than through legislation, according to Dave Turnbull, London regional organiser for the Transport & General Workers' Union.

"We're getting a sense that some of the bigger companies are recognising that they can't run their businesses on low pay," he said. "In London now, many people are getting quite a bit above the minimum wage."

However, he added, smaller companies, particularly restaurant chains, are still paying too little to retain their staff.

From October, the Government will raise the minimum adult hourly rate to £3.70 while the rate for those aged 18-21 will rise in June from £3 to £3.20.

The British Hospitality Association (BHA) said that it did not see the 10p increase having a dramatic effect, except in some rural areas already hit by the introduction of a minimum wage last year.

The BHA is also calling for greater clarification over the amount that can be deducted for supply of accommodation.

"They need to simplify the rules," said BHA deputy chief executive Martin Couchman. "Even the Low Pay Commission officials can't explain it. It seems it was inserted at the last minute by some mad lawyer."

The national minimum wage helpline is on 0845 600 0678.

by Christina Golding