Citizens Advice has welcomed the Government’s latest increase in the National Minimum Wage which takes effect on 1st October 2008. The increase will boost the rates for those aged 22 years old and above to £5.73, up 21p per hour. Those aged 18 to 21 should now receive £4.77 per hour and 16 and 17 year olds are entitled to £3.53 per hour.
The latest increases are in line with recommendations from the Low Pay Commission and will be welcomed by the estimated 40,000 workers in Northern Ireland, and 1million UK wide, who are being paid at minimum wage level. Most workers including part-time, casual, home workers and agency workers are entitled to minimum wage and the policy is part of the Government’s wider policy of eradicating poverty in work.
The Government is also currently preparing a further crackdown on bosses who fail to pay the minimum wage, with tough new penalties set to come into force next April. An information campaign in the New Year will aim to make sure that every employer is aware of the proposed changes which will include automatic fines for underpayment and a fairer way of calculating minimum wage arrears so that workers do not lose out as a result of underpayment.
Citizens Advice operates the National Minimum Wage Helpline in Northern Ireland on behalf of the Department for Business Enterprise & Regulatory Reform. The Helpline offers impartial and confidential advice to workers and employers on all aspects of minimum wage and passes cases of suspected non-compliance to the local HMRC Compliance team for further investigation.
Diane Wilson, NMW Project Manager, said today:
“Since its introduction in 1999 the minimum wage has made a real difference to the lives of low paid workers. This latest increase will be welcomed by many workers who are already struggling to pay increasing housing and fuel bills as winter and Christmas approach. National Minimum Wage is a statutory employment right but despite their legal obligations many employers continue to ignore the law and it is important that workers do not accept any form of underpayment. I would urge anyone who has concerns about their pay rate to contact our Helpline advisers to see how the service can help them obtain the legal hourly rate and any arrears owed to them.”
The Helpline was set up in 2001 and since then has assisted over 6,500 workers to assert their right to over £2.7million of arrears which has been identified by the HMRC Compliance team throughout Northern Ireland. Whilst the majority of employers support their workers right to minimum wage, the Helpline still receives reports of many suspected non-compliant cases and Northern Ireland remains one of the highest regions of non-compliance in the UK. Last year the Helpline took over 100 referrals and the subsequent investigations by the HMRC found 67% of those employers not to be paying minimum wage.
The Helpline is expecting a marked increase in calls to the service as workers and employers implement the latest changes. The service aims to educate all workers and employers in Northern Ireland of the rules governing minimum wage.
Anyone who has questions or concerns over the rates can contact the NMW Helpline, in confidence, on 0845 6500 207. Alternatively, visit the website.
Notes to Editors
- The National Minimum Wage Helpline 0845 6500 207. Lines are open 9am – 5pm, Monday to Friday. Outside these hours there is an answering service. All calls charged at local rate.
- Northern Ireland has claimed around 10% of the total arrears identified in the UK, despite having only 3% of the UK population.
- CAB is the largest advice agency in Northern Ireland answering over 260,000 enquiries last year, via a network of 28 offices and 107 other outlets. The agency has an integrated IT network linking all its offices to provide up to date electronic information to the public.
- The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality.