The new rates are:
workers aged 22 and over: £5.80 (currently £5.73 per hour)
workers aged 18-21: £4.83 (currently £4.77 per hour)
workers aged 16 and 17 (provided they are above compulsory school age): £3.57 (up from the current £3.53).
The increases are in line with recommendations made in a recent report published by the Low Pay Commission (LPC) and are set with a view to balance the “needs of workers and businesses in the current economic climate”. Many businesses had called for a freeze on increases this year and will be disappointed by the announcement.
The government also announced that 21 years olds (currently on the youth rate) will receive the adult rate from 2010. This previous LPC recommendation will come in to effect from next October.