On 7 March 2007, the government announced that it was accepting the recommendation of the Low Pay Commission (LPC) that the National Minimum Wage (NMW) for adult workers aged 22 and over should increase by 3.2% from £5.35 per hour to £5.52 per hour from October 2007.
The government has also accepted the LPC's recommendation that, from October 2007, the Youth Development Rate for workers aged 18 to 21 inclusive should increase from £4.45 per hour to £4.60 per hour and the rate for workers aged 16 and 17 should increase from £3.30 per hour to £3.40 per hour.
However, the government did not, yet again, accept the LPC's recommendation that the adult rate of the NMW should be paid to workers aged 21.
The LPC did not make any recommendation about the level of the NMW from October 2008 as, according to Paul Myners, the Chairman of the LPC, "a cautious approach" was needed.
However, he went on to say that the LPC's present view was that "the increases we are likely to recommend for 2008 in our next report will be around the predicted rise in average earnings, but much will depend on what happens between then and now in the economy and the labour market."
At the same time, Alistair Darling MP, the Secretary of State for Trade and Industry, announced the appointment of Professor Steve Machin and Professor Robert Elliott to the LPC in place of Professor Willy Brown and Professor David Metcalf.
For further informatiom see the press release.