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Employment: Wage gap widens on minimum rates

The new rate, announced on Monday by Trade and Industry Secretary Patricia Hewitt, could end very low wages, but it is unlikely to help the majority.

Low Pay Commission research in 2002 found only 7.5 per cent of 16- and 17-year-olds earn less than 2.90-an-hour, with the majority in the 3 to 4 bracket. Under new rates, many could earn almost 2-an-hour less than over-21s, whose minimum rate increases to 4.85 in October.

The Children's Rights Alliance for England said the Government had missed a chance to end the tiered wage system. "It's great that 16- and 17-year-olds are going to get a minimum wage but 3 isn't enough," said senior policy officer Louise King.

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