The increases are based on recommendations made by the Low Pay Commission in its interim report this week. The minimum wage for 16- and 17-year-olds will rise to 3.30 from 3.00 an hour, while the youth development rate for 18- to 21-year-olds will rise from 4.25 to 4.45. The adult rate has risen from 5.05 to 5.35. The report called for reviews of the 16- to 17-year-old rate to be carried out at the same time as those for adults.
Lord Adair Turner, outgoing chair of the commission, said lower minimum wage rates benefit young people by not pricing them out of the market.
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