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The national minimum wage rises

The national minimum wage went up last week to Pounds 4.50 an hour for people aged 22 and over and 3.80 for those aged 18 to 21. The Government said that the increase in the main rate would benefit between 1.3 million and 1.6 million people, and that it was around double the rate of average earnings growth and almost three times the rate of inflation. Trade and industry secretary Patricia Hewitt described the minimum wage as 'a milestone in preventing employers exploiting cheap labour'. She added that this was its fifth increase since its introduction and that next October the Government intended to introduce 'another above-inflation increase to Pounds 4.85 (that) will bring us in reach of the 5 minimum wage', with Pounds 4.10 for people aged 18 to 21. The Low Pay Commission is currently looking at the possible advantages and disadvantages of creating a minimum wage rate for people aged 16 and 17.

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