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Welfare Reform on the Web (May 2007): Minimum Wage - UK

National minimum wage: Low Pay Commission report 2007

London: TSO, 2007 (Cm 7056)

The Commission’s remit was to review their recommendations for uprating the adult and youth development minimum wage rates in October 2007 in the light of the present economic circumstances. They also reviewed the minimum wage rate for 16-17 year olds and the operation of the accommodation offset. The Commission recommends that in October 2007 the adult rate of the minimum wage should be increased to £5. 52 and the youth development rate should be increased to £4.60. The 16-17 year olds’ minimum wage should be increased to £3.40. The Commission expects that no more ‘above average earnings’ increases should be required in the next few years. The enforcement of the minimum wage rules, particularly in relation to migrant workers and homeworkers, remains problematic. The report recommends that as a deterrent to non-compliance, the Government introduce a penalty to apply to any employer found to have underpaid the minimum wage.

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