https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2015-to-2016
National Minimum Wage
The National Minimum Wage is the minimum pay per hour almost all workers are entitled to by law.
The rates below are from the 1st October 2015 and are likely to change again on 1 October 2016 as they usually go up every year.
| Category of worker | Hourly rate |
| Aged 21 and above | £6.70 |
| Aged 18 to 20 inclusive | £5.30 |
| Aged under 18 (but above compulsory school leaving age) | £3.87 |
| Apprentices aged under 19 | £3.30 |
| Apprentices aged 19 and over, but in the first year of their apprenticeship | £3.30 |
| Year | 21 and over | 18 to 20 | Under 18 | Apprentice* |
|---|---|---|---|---|
| 2015 (current rate) | £6.70 | £5.30 | £3.87 | £3.30 |
| 2014 | £6.50 | £5.13 | £3.79 | £2.73 |
| 2013 | £6.31 | £5.03 | £3.72 | £2.68 |
| 2012 | £6.19 | £4.98 | £3.68 | £2.65 |
| 2011 | £6.08 | £4.98 | £3.68 | £2.60 |
| 2010 | £5.93 | £4.92 | £3.64 | £2.50 |
UK's low wage workers are to see the national minimum wage, which currently stands at just 6.50 pounds per hour, rise to 7.20 pounds for over 25s and rising to 9 pounds by 2020.
Whilst this is great news for workers struggling on a low income trying to survive in one of the most expensive cities in the world, the fashion and retail industry has warned its sector faces a huge rise in labor costs after the government's promise to raise the national wage.
From April next year, businesses will be required to increase the wage, with some high street retailers, like Next, already issuing profit warnings. Next has stated the National Living Wage will cost the business 27 million pounds each year from 2016 until the end of the decade.
Next will see its wage bill increase to 147 million pounds
Next year's increase will cost the business just 2 million pounds but thereafter the increases will be much higher, taking the total wage bill to 147 million pounds by 2020.
The retail industry is, of course, staffed by many low-wage workers. Boutique assistants and stockroom staff are some of the lowest paid jobs in the country, despite being part of a key sector to the UK economy. The fashion industry employs nearly 3 percent of the population at just under 800,000 workers. Many of whom are on the minimum wage.
I believe that as the minimum wage increases each year, retailers and companies start to loose out on money as they have to pay their workers a higher wage which cuts into there profits. You would think this is the case but i personally think that when the wage goes up, so does the companies price that they charge. For example, if the minimum wage goes up by 20p then a business like Topshop would increase there prices of clothes by 20p, if not more. They would do that so they don't end up loosing a profit. I also believe that they need to do this because if the minimum wage rises so does the cost of their manufacturing and producing the garments as they need to pay those workers more meaning that the average production of a garment goes up. If they kept the price of the clothes the same when the minimum wage rises each year, then they would end up loosing a large amount of their profit. This is because they would be paying their workers from each part of the cycle a higher amount but they wouldn't be getting the money from anywhere but there profits. But if there profits are rising then it doesn't matter if they cut into it a little to pay the workers more.
I believe that increasing the minimum wage each years seems like a great idea but it reality i think that increasing the wage means increasing the price of living. Workers will be paid more but household items, clothes, groceries and leisure would also increase in price meaning that by upping the wage doesn't actually increase your overall income.
