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National Minimum Wage

8 July 2010

The Coalition government has accepted the proposals made by the Low Pay Commission in February for increases in the National Minimum Wage.

The new rates, effective from 1 October 2010, are:

  • Adult rate: £5.93 (up from £5.80)
  • Development rate: £4.92 (up from £4.83)
  • 16-17 year old rate: £3.64 (up from £3.57)

In line with a recommendation made by the LPC last year, the Adult rate will apply from age 21 instead of 22. The LPC was also asked to recommend a minimum hourly rate for paid apprenticeships, which will be £2.50.

The Government has also tweaked the remit of the LPC for its next review of the NMW, by including a specific request for it to "review the labour market position of young people, including those in apprenticeships and internships".

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