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We confirm our original recommendations that in October 2006 the adult rate of the minimum wage should be increased to £5.35 and the youth Development Rate should be increased to £4.45. (Paragraph 2.81) 16-17 Year Olds We recommend that the minimum wage for 16-17 year olds be increased to £3.30 from October 2006. We also recommend that the Government ask us to review the rate in line with the timing of the reviews of the rates for older workers. (Paragraph 3.54) Trainees We recommend that the Government invite the Commission to carry out a full review of the apprenticeship exemptions and report in 2008. (Paragraph 3.88) Salary Sacrifice We recommend that childcare vouchers should not count towards the National Minimum Wage. (Paragraph 4.50) We recommend that salary sacrifice schemes should not count towards minimum wage pay. (Paragraph 4.52) Accommodation Offset We recommend that the accommodation offset provisions should continue to apply to all workers housed by their employer in all circumstances. (Paragraph 4.114) We recommend that the Government update existing guidance on the accommodation offset so that it is as clear and comprehensive as possible, and ensure that information is available on relevant websites. We also recommend that the Government take action to raise awareness of the offset, with a particular emphasis on employers and workers in agriculture and other sectors affected by the overlap between the Agricultural Wages Orders and the National Minimum Wage provisions. (Paragraph 4.119) We recommend that the Government should implement legislative measures to prevent employers using the device of a separate accommodation company to evade the accommodation offset. We also recommend that it should make available guidance on the types of circumstances in which it will deem the employer to be the accommodation provider, taking account of the principles we have set out in paragraph 4.126. (Paragraph 4.127) Enforcement We recommend that the Government should step up enforcement of the minimum wage in low-paying sectors that employ significant numbers of migrant workers, particularly agriculture and food processing and packing, and that these sectors are targeted as a priority within HM Revenue and Customs' rolling programme of targeted enforcement. (Paragraph 4.133) |
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