Explanatory Note
(This note is not part of the Regulations)
These Regulations amend the National Minimum Wage Regulations 1999 and come into force on 1st October 2006 immediately after the Employment Equality (Age) Regulations 2006. They increase the principal rate of the national minimum wage from £5.05 to £5.35 per hour. They also increase the rate to be paid to workers aged between 18 and 21 from £4.25 to £4.45 per hour and the rate to be paid to workers aged below 18 who have ceased to be of compulsory school age from £3.00 to £3.30 per hour.
The Regulations amend regulation 13(7) of the National Minimum Wage Regulations 1999, as amended by the Employment Equality (Age) Regulations 2006. This amendment ensures that it is clear that workers who do not qualify for the national minimum wage under regulation 12 are also not entitled to either of the rates set out in regulation 13.
In addition, the Regulations amend the per day value of the accommodation amount which is applicable where an employer provides a worker with living accommodation. The amendment increases the amount from £3.90 to £4.15 for each day that accommodation is provided.
The Regulations revoke previous provisions, which increased the principal hourly rate of the national minimum wage, the rate to be paid to workers aged between 18 and 21 and the daily value of accommodation amount.
A Regulatory Impact Assessment of the estimated costs and benefits of the rate increases has been placed in the libraries of both Houses of Parliament. Copies are available to the public from The Employment Relations Directorate, Partnership Branch, Department of Trade and Industry, 1 Victoria Street, London SW1H 0ET and on the DTI website at www.dti.gov.uk.