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National Minimum Wage increased
The National Minimum Wage rose to £5.35 per hour from 1 October 2006, benefiting around 1.3 million workers.
The adult rate of the National Minimum Wage increased from £5.05 to £5.35 per hour, while the youth rate, paid to 18-21 year-olds, went up from £4.25 per hour to £4.45. The rate for 16-17 year olds increased from £3.00 an hour to £3.30 per hour.
When the National Minimum Wage was launched in 1999 the main rate was £3.60 per hour and the 18-21 year-old rate was £3.00 per hour. Since then an estimated one million workers per year have benefited from the National Minimum Wage. Before its introduction, wages of as little as £1.20 per hour were common and legal.