National Minimum Wage

National Minimum Wage
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1.1 per cent for the 16-17 Year Old Rate) that were less than the increase for the adult rate of
the minimum wage.
1.4 We also argued that the initial Apprentice Rate appeared to have had little or no negative
effect on the supply of apprentice places, noting that the initial rate had been set cautiously,
broadly equating to the weekly rate that had been set by the Learning and Skills Council for
apprentices in England in August 2009. We therefore recommended that the Apprentice Rate
be increased by 10 pence, or 4 per cent, to £2.60 an hour from 1 October 2011. Table 1.1
puts all of these minimum wage recommendations into their historical context.
Table 1.1: National Minimum Wage Hourly Rates, UK, 1999-2012
Adult rate Youth
Development
Rate
Rate Change
Rate Change
16-17 Year Old
Rate
Rate Change
£ % £ % £ % £
Apprentice Rate
Rate Change
Oct 2011- 6.08 2.5 4.98 1.2 3.68 1.1 2.60 4.0
Oct 2010-Sept 2011 5.93 2.2 4.92 1.9 3.64 2.0 2.50 -
Oct 2009-Sept 2010 5.80 1.2 4.83 1.3 3.57 1.1
Oct 2008-Sept 2009 5.73 3.8 4.77 3.7 3.53 3.8
Oct 2007-Sept 2008 5.52 3.2 4.60 3.4 3.40 3.0
Oct 2006-Sept 2007 5.35 5.9 4.45 4.7 3.30 10.0
Oct 2005-Sept 2006 5.05 4.1 4.25 3.7 3.00 0.0
Oct 2004-Sept 2005 4.85 7.8 4.10 7.9 3.00 -
Oct 2003-Sept 2004 4.50 7.1 3.80 5.6
Oct 2002-Sept 2003 4.20 2.4 3.60 2.9
Oct 2001-Sept 2002 4.10 10.8 3.50 9.4
Oct 2000-Sept 2001 3.70 2.8 3.20 -
Jun 2000-Sept 2000 3.60 - 3.20 6.7
Apr 1999-May 2000 3.60 - 3.00 -
Source: Low Pay Commission (LPC).
Note: From October 2010, those aged 21 are covered by the adult rate. Previously they had been covered by the Youth
Development Rate.
1.5 The adult rate uprating in October 2011 was the largest since October 2008 but was still
lower than the percentage increases that had generally occurred prior to the onset of
recession. The percentage increase in the Youth Development Rate in October 2011 was the
smallest ever. The percentage increase in the 16-17 Year Old Rate was also the smallest ever,
apart from in October 2005 when it was frozen to allow the Commission to gather evidence
about the impact of its introduction.
1.6 Since its introduction, the minimum wage for adults has increased by 68.9 per cent, slightly
higher than the 66.0 per cent increase in the Youth Development Rate. The 16-17 Year Old
Rate has increased by 22.7 per cent since it was introduced in October 2004. Over the same
period, the adult rate has increased by 25.4 per cent and the Youth Development Rate has
increased by 21.5 per cent.
%