Minimum wage will not be cut, Number 10 says Downing Street moved to calm fears that the basic hourly wage for everyone would be cut because of complaints from small businesses that they could not afford it, but could not guarantee it will not be frozen. The hourly rate increased from £6.08 to £6.19 for those aged over 21 last October, but for employees aged 18 to 20 it was frozen at £4.98. The new rate for this October is due to be announced shortly. The Daily Telegraph disclosed on Tuesday that the Low Pay Commission which sets the wage has been told formally by ministers to consider the impact on "employment and the economy," before agreeing future increases. The change, which will be written into the Commission's new terms of reference, raised the prospect of the first ever across-the-board freeze or cut in the minimum wage for everyone if the economic uncertainty continues. Number 10 insisted the wage will not be cut, but could not give assurances on whether it will be frozen. One source said: "We are not going to cut the minimum wage." The Prime Minister's deputy official spokesman added: "We need to make sure it works and it continues to support people." A three-yearly review of the Commission disclosed that the Department for Business has been frustrated that not enough attention has been paid by the Commission to successive rises in the minimum wage on the economy. A Business Innovation and Skills spokesman said: "We will respond to the Low Pay Commission's recommendations for the National Minimum Wage rates in due course."