The Government has also accepted the Commission’s recommendation that the adult rate should be increased to £4.85 and the Development Rate (for 18–21 year olds) to  £4.10 in October 2004.

Chairman of the Low Pay Commission, Adair Turner, said:

“We have concluded that a minimum wage for 16–17 year olds will tackle the worst cases of jobs which pay very low wages and provide minimal training, without encouraging young people out of education and training or pricing them out of the jobs market.”

Commenting on the new minimum wage rates for workers aged 18 and over, Adair Turner said:

“In our fourth report, published in March last year, we recommended minimum wage increases for October 2003 and October 2004.  We wanted to give business enough notice of the increases to help them to plan ahead.  But we also believed it was prudent to review the rates for October 2004 nearer the time, in the light of prevailing economic circumstances.  We have now completed that review.  We confirm our original recommendations.  We believe it is right to have a significant increase in the real value of the minimum wage, which will bring benefits to many low-paid workers.  While the increases will be a challenge for many businesses, we believe they are affordable, and can be achieved without damaging people’s employment prospects or the wider economy.”

Notes to Editors

1.         The Low Pay Commission is a statutory body whose role is to advise the Government on the National Minimum Wage.

2.         A list of the recommendations made by the Commission in its 2004 report is attached.  The Commission’s reports are available from the Stationery Office Bookshops or the Commission’s website at: http://www.lowpay.gov.uk/