Major concerns over National Minimum Wage rises

Posted on March 1st, by editor in Caring Times. No Comments

The announcement by the Government that the National Minimum Wage (NMW) will go up in October has been met by calls for the amount of local authority funding to be increased as well. Business leaders have also expressed their concerns about the amount of the increase saying that it is above the current rate of inflation and will possibly damage the competitiveness of their businesses. The NMW will rise from £4.85 per hour for adults aged 21 and over to £5.05 per hour. In October 2006, using the findings of the Low Pay Commission, a statutory advice body, the NMW is set to rise again to £5.35 an hour. Mark Ellerby, managing director, BUPA Care Homes, says: “BUPA strongly supports the National Minimum Wage, but we firmly believe care workers should be paid more for the important contribution they make in caring for frail, elderly people. “The announcement of an increase of 4.1% this year and 5% next year is well above the rate of inflation. In effect, future funding for care homes has been cut from 6% to 2.7

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