National Minimum Wage

Chapter 3: Young People, Interns and Apprentices
3.10 Figure 3.1 shows that on average the Youth Development Rate and the adult rate of the
NMW have risen by just over 4 per cent a year since 1999, and the 16-17 Year Old Rate by a
little over 3 per cent a year since its introduction in 2004. Over the whole period, 1999-2011,
the median earnings of younger workers (aged between 16 and 20) have grown by about 3
per cent a year, and those of adult workers by 3.3 per cent a year. However, Figure 3.1 also
shows that younger workers’ pay increased in line with adults between 1999 and 2007, but
has not kept pace since then.
Figure 3.1: Growth in the Minimum Wage and Median Earnings, by Age, UK, 1999-2011
Annualised growth over the period (per cent)
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NMW Earnings NMW Earnings NMW Earnings NMW Earnings
April 1999-April 2011 April 1999-April 2007 April 2007-April 2011 April 2010-April 2011
16-17
18-20 21+
Source: Low Pay Commission (LPC) estimates based on ASHE: without supplementary information, April 1999-2004; with
supplementary information, April 2004-2006; and 2007 methodology, April 2006-2011, standard weights, including those not
on adult rates of pay, UK.
Notes:
a. The National Minimum Wage growth for 21 year olds and above is based on the adult minimum wage rate, which applied
only to those aged 22 and over between 1999 and 2010.
b. Annualised growth for the 16-17 Year Old Rate is from October 2004 when it was introduced.
3.11 Between 1999 and 2007 there was very little difference in the annual increase in the
applicable NMW rate for each age group, although 16-17 year olds did have slightly higher
median earnings growth of 4.3 per cent a year. However, since 2007, when NMW upratings
have been broadly consistent across age groups, median earnings growth has been
significantly different. Between 2007 and 2011, adults aged 21 and over have seen annual
median earnings growth of 2.2 per cent, compared with 1.2 per cent for 18-20 year olds,
and 0.6 per cent for 16-17 year olds.
3.12 Between 2010 and 2011 median earnings increased by 0.3 per cent for those aged 21 and
over, and by 0.8 per cent for workers aged 18-20. They remained unchanged at £5.00 an hour
for 16-17 year olds – the same as in 2008.
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