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New Minimum Wage Rates

New rates for the National Minimum Wage (NMW) come into force on 1st October 2011

The Government has accepted the recommendations of the Low Pay Commission (LPC) on new rates for the National Minimum Wage (NMW) that will come into force on 1 October 2011.

The revised rates are as follows:

• The adult hourly rate of the NMW will increase from £5.93 to £6.08;
• The development rate (which covers workers aged 18-20 years) will increase from £4.92 to £4.98; and
• The rate for workers aged 16 and 17 will increase from £3.64 to £3.68.

The apprentice rate, for apprentices under 19 or those aged 19 or over and in the first year of their apprenticeship, will increase from £2.50 to £2.60 per hour.

From 1 October 2011, the accommodation offset will rise from £4.61 per day to £4.73.

The LPC reports that there is continuing evidence of breaches of the NMW Regulations with regard to young people doing work experience and recommends that stronger enforcement action should be taken. This should be accompanied by better understanding of when a legitimate unpaid work experience opportunity becomes a work placement that should be paid at least the NMW. Accordingly, it recommends that the Government takes steps to raise awareness of the rules applying to payment of the NMW for those undertaking internships, all other forms of work experience and volunteering opportunities, and that these rules are effectively enforced by HM Revenue and Customs using its investigative powers.

The LPC Report for 2011 can be found at http://www.lowpay.gov.uk/lowpay/report/pdf/Revised_Report_PDF_with_April_date.PDF

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Published: Monday 5th September 2011
Categorised: Education, Employment

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