This is the first year, since the National Minimum Wage was introduced, in April 1999 that the Low Pay Commission has recommended an increase in line with inflation rather than above it.

The Chairman of the Low pay Commission stated that their "cautious approach this year should not be taken as a signal that the minimum wage is too high. After four years of substantial increase, this year the evidence pointed to the need for moderation. Next year that might change, or the need for caution might be even stronger."

The minimum hourly rate from 1 October 2007 will be:

• 5.52 for workers aged over 22, a rise of 17p;
• 4.60 for workers aged 18-21, a rise of 15p;
• 3.40 for workers aged 16-17, a rise of 10p.

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