Is 15p enough (a tough balancing act)?

The National Minimum Wage (NMW) has risen by 15 pence per hour to give a pay rise for Britain's lowest paid workers.

With RPI inflation running at 5.2 per cent (CPI at 4.5%) the real income of these workers will fall. Inflation is high due to this year's VAT increase, increasing fuel prices and any number of other significant price pressures.  This years increase in the NMW won't allow Britain's lowest paid workers to maintain their standard of living.

However, before rushing to any judgement on this apparently about the small increase, consider that the Low Pay Commission (LPC) (which oversees increases in the minimum wage) had a truly tricky job on its hands. Given the poor GDP growth forecasts and rising unemployment, they couldn't risk making a tough labour market worse.

Therefore the key conflicting issues the LPC need to consider are:
What increase do we require to maintain the lowest income earners' standard of living?
and
What level would an increase in pay cost jobs in this economic climate?

Retailers take the view the NMW will cost jobs here