Minimum wage rise ‘falls short’

(05/03/08) UNISON has welcomed a 21p boost in the national minimum wage as a step in the right direction, but says it is still too low.The union is urging a "bolder" approach to prevent the gap between rich and poor widening further.The adult minimum wage will rise from £5.52 to £5.73 an hour in October, the prime minister said today.The new rate for 18 to 21-year-olds will be £4.77, up from £4.60, while 16 to 17-year-olds will get £3.53, up from £3.40.UNISON general secretary Dave Prentis said there was no doubt the rise would benefit many low-paid workers."However, it falls short of its aim to protect the poor from the constant price rises in essentials like fuel, food and housing," he said."A much more realistic figure would be a minimum wage of £6.75 an hour, which would lift many more families out of poverty and off means-tested benefits."UNISON believes the government was too cautious when it introduced the minumum wage in 1999.In its evidence to the Low Pay Commission last year, the union made the case for an inflation-busting boost to the minimum wage, and called for an end to youth rates and regional variations.It also pressed for stiffer penalties and stronger enforcement powers to crack down on rogue employers who underpay staff.The TUC believes 150,000 workers still being paid less than the statutory minimum.