These Regulations amend the National Minimum Wage Regulations 1999 (the “Principal Regulations”) and come into force on the 1st October 2007.

Regulation 2 increases the principal rate of the national minimum wage from £5.35 to £5.52 per hour (Regulation 2). The Regulations also increase the rate paid to workers aged between 18 and 21 from £4.45 to £4.60 per hour (Regulation 4(a)) and the rate to be paid to workers aged below 18 who have ceased to be of compulsory school age from £3.30 to £3.40 per hour (Regulation 4(b)).

Regulation 8 amends the per day value of the accommodation amount which is applicable where an employer provides a worker with living accommodation. The amendment increases the amount from £4.15 to 4.30 for each day that accommodation is provided.

Regulation 3(2) amends Regulation 12 of the Principal Regulations to add to the categories of workers who do not qualify for the national minimum wage, workers who are participating in the Programme Led Apprenticeships scheme in England.

Regulation 3(3) amends Regulation 12(8) of the Principal Regulations so that the Regulation applies to workers undertaking courses of higher education instead of workers attending courses of higher education.

The Regulations insert three new classes of persons who do not qualify for the national minimum wage. These are workers who attend a period of work experience as part of a course of further education, workers participating in the latest phase of the Leonardo da Vinci Programme, a specific European Community scheme intended to provide its participants with vocational training and workers participating in the European Community Youth in Action Programme.

Regulation 5 inserts Regulation 31(3) to (5) into the Principal Regulations so that Regulation 31(1)(i) of the Principal Regulations (reductions from payments to be taken into account) will not apply to deductions made by or payments to a local housing authority or registered social landlord in respect of the provision of living accommodation save where a connection exists between the provision of the living accommodation and the employment with the local housing authority or registered social landlord. Regulations 6 and 7 provide that where the deduction or payment in respect of the provision of living accommodation is exempted from regulation 31(1)(i) by regulation 31(3) it will not be taken into account under Regulation 31(1)(g) or (h).

The Regulations contain two transitional provisions and a revocation provision. The latter revokes previous provisions which increased the principal hourly rate of the national minimum wage, the rate to be paid to those who qualified for the national minimum wage at a different rate and the daily value of the accommodation amount.