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Government tax credits cuts undermine the minimum wage increase says Usdaw

Date: 01 October 2015 The shopworkers’ trade union Usdaw has welcomed today’s increase in the minimum wage, set by the Low Pay Commission, but warns that other Government policies are harming low-paid family incomes.
The new rates that come into force today (1 October 2015) are:
  • £6.70 for 21 year olds and over.
  • £5.30 for 18 to 20 year olds.
  • £3.87 for under 18s
  • £3.30 for apprentices aged 16 to 18 and those in their first year aged 19 or over.
John Hannett - Usdaw General Secretary says: "We welcome this pay rise for the millions of low-paid workers who rely on the National Minimum Wage. However, it has been undermined by the Government’s savage cuts to tax credits. Many working parents stand to lose hundreds if not thousands of pounds a year, so families already struggling to make ends will be even worse off.

“The minimum wage is a basic rate that employers should be seeking to pay above. In all companies where Usdaw negotiates wages, we have secured better than minimum wage rates and we are always working towards and beyond the Living Wage Foundation rate of £7.85 per hour.”

Notes for editors:

Usdaw (Union of Shop, Distributive and Allied Workers) is the UK's fourth biggest and the fastest growing trade union with over 440,000 members. Membership has increased by more than 17% in the last five years and by nearly a third in the last decade. Most Usdaw members work in the retail sector, but the Union also has many members in transport, distribution, food manufacturing, chemicals and other trades.

For Usdaw press releases visit: www.usdaw.org.uk/news and you can follow us on Twitter @UsdawUnion

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The official website of the Union of Shop, Distributive and Allied Workers