National Minimum Wage Rates

The adult rate of the minimum wage should be increased to £5.05 in October 2005. The rate should be further increased to £5.35 in October 2006, subject to confirmation by the Commission in February 2006 following a review to check that the macroeconomic conditions continue to make it appropriate, and in the light of the implementation of age discrimination legislation. (Paragraph 7.36)

The youth Development Rate should be increased to £4.25 in October 2005 and £4.45 in October 2006. (Paragraph 7.38)

The Government should invite the Commission to review the operation of the 16-17 year old rate (above compulsory school age) and to report in February 2006, with recommendations suitably adjusted to take account of the absence of any uprating in 2005. (Paragraph 7.41)

Young People

Twenty-one year olds should receive the adult rate of the National Minimum Wage. (Paragraph 5.48)

Training

We have provisionally concluded that the older workers' Development Rate should be abolished from October 2006 and that, simultaneously, the 12 months exemption from the minimum wage should be extended to cover all apprentices aged 19 and over. The Government should invite the Commission to review these provisional conclusions and make firm recommendations on these matters by February 2006. (Paragraph 5.60)

Awareness

The Government should undertake a review of its minimum wage publicity strategy to consider how best to target low-paid workers more pro-actively, with particular emphasis on vulnerable groups of workers. (Paragraph 6.9)

Enforcement

The Government should introduce interest charges payable on arrears arising from minimum wage underpayment and financial penalties for seriously non-compliant employers. (Paragraph 6.48)

Salary Sacrifice

The Government should invite the Commission to review the issue of salary sacrifice in depth and to report by February 2006. (Paragraph 3.27)

Accommodation Offset

The accommodation offset should increase in line with the adult rate of the minimum wage, rising to £3.90 per day from October 2005 and £4.15 per day from October 2006. (Paragraph 3.40)

Social Care Sector

The Government should continue to make clear to local authorities that policies on commissioning care should reflect the costs of provision, including payment of travelling time. The Government should monitor the approach of local authorities, examine the reasons for any uneven provision and, if appropriate, provide further guidance. (Paragraph 3.71)

Volunteers

The Government should review and draw together existing guidance into a single source to provide clear and accessible advice to the voluntary sector. (Paragraph 4.54)