The Government has announced increases in the national minimum wage rates in line with the recommendations of the Low Pay Commission. These will apply from October 2008.

The adult national minimum wage will rise from £5.52 to £5.73 an hour. The minimum rate for 18- to 21-year-olds will increase from £4.60 to £4.77 an hour and for 16- to 17-year-olds the rate will be £3.53 an hour instead of £3.40.

The Government has also boosted the funding available for enforcement of the national minimum wage legislation and the Employment Bill currently before Parliament aims to deter non-compliance by introducing tough new penalties for rogue employers who underpay staff.