National Minimum Wage.

The Government has recently responded to the recommendations made in the Low Pay Commission's 2005 Report on the National Minimum Wage. The Government have accepted.

• The adult rate of the minimum wage (for workers aged 22 and over) will increase from its present hourly rate of £4.85 to £5.05 in October 2005, and to £5.35 in October 2006. The 2006 increase is subject to confirmation by the Commission in February 2006, to check that the economic conditions continue to make it appropriate.
• The development rate (for workers aged 18-21 inclusive) will increase from the present hourly rate of £4.10 to £4.25 in October 2005 and £4.45 in October 2006.

NB: The development rate can also apply to workers aged 22 and above during their first 6 months in a new job with a new employer and who are receiving accredited training.

• The Government should invite the Low Pay Commission to review the operation of the 16-17 year old rate of £3 an hour and to report in February 2006, with recommendations for any subsequent increases.

16 and 17 year olds rate

The Government accepted the Low Pay Commission's recommendations for a new rate for 16 and 17 year olds (above compulsory school leaving age)* in their 2004 report.

£3.00 per hour from 1 October 2004

NB: 16 and 17 year old apprentices are exempt from the young workers rate.

*Compulsory School Age

• In England and Wales: a person is no longer of compulsory school age after the last Friday of June of the school year in which their 16th birthday occurs.
• In Northern Ireland: a person is no longer of compulsory school age after the 30th June of the school year in which their 16th birthday occurs.
• In Scotland: pupils whose 16th birthday falls between 1st March and 30th September may not leave before the 31st May of that year. Pupils aged 16 on or between 1st October and the last day of February may not leave until the start of the Christmas holidays in that school year.

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