About 1.5 million low paid workers will be entitled to higher minimum rates of pay thanks to increases in the minimum wage (around 70 percent of the beneficiaries of the minimum wage are women). In October the minimum wage will go up by 10 pence/hour, to #4.20, with the youth rate at #3.60.

The rate has now risen by 50p an hour since September 2001. The Low Pay Commission recommended last year that both rates of the minimum wage should be increased by 10 pence/hour in October 2002, to #4.20 and #3.60 respectively. The Government stated last year that it
accepted these increases ‘subject to economic circumstances at the time’. It is now expected that the conditions in October will be suitable.