Skip to content


UK minimum wage to rise to £5.52

Summary

In this report, 'National Minimum Wage' (Cm. 7056), the Low Pay Commission recommends a 3.2% increase in the minimum wage for adults to £5.52 in October 2007, which is a moderate increase compared with the past two years.

The proposed increase is in line with the majority of recent pay settlements. The Youth Development Rate is recommended to increase from £4.45 to £4.70, and the 16-17 rate should increase from £3.30 to £3.40. The cautious approach is partly due to the concerns expressed by employers about the pace of recent increases, but also takes account of the prospects for the UK labour market and economy, and the impact of other Government legislation.

The Commission also monitored and evaluated the impact of the minimum wage and considered its effect on different groups of workers since its inception in 1999.

Chapters cover:

  • The history and economic background of the minimum wage
  • The impact of the wage on earnings, the labour market and firms
  • Effects on specific sectors and small firms
  • Groups of workers and specific enforcement issues
  • Young people and trainees
  • Compliance and enforcement
  • Setting the rates.

Found this story interesting?
Spread the news by clicking below to add it to your bookmarking service:

Law-Making Explained

This is a Command Paper (Cm. 7056): it is a report from the Low Pay Commission.

Find out more about Command Papers.

How does it affect me?

If you are an employer with minimum wage employees or an employee receiving minimum wage, this affects you.

The Low Pay Commission here recommends a 3.2% increase in the minimum wage for adults to £5.52 in October 2007.

Find out more about the work of the Low Pay Commission.

Have Your Say Now


Find out how to have your say