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 26 July 2008
Department for Innovation, Universities and Skills (DIUS)
 
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History of the National Minimum Wage

1 May 1997General Election. The new Labour government promised, in the Queen's Speech, to uphold its manifesto commitment by introducing legislation on a national minimum wage as soon as possible.
July 1997The members of the independent Low Pay Commission were appointed.
September 1997The Low Pay Commission was asked to report on the rates of the national minimum wage and how it should be implemented.
26 November 1997The National Minimum Wage Bill was introduced before Parliament.
18 June 1998The Low Pay Commission presented its First Report to the Prime Minister. Margaret Beckett, gave the Government Response in the House of Commons.
31 July 1998The National Minimum Wage Act 1998 gained Royal Assent.
September - November 1998The Public Consultation on the draft National Minimum Wage Regulations took place.
January 1999Inland Revenue (who will enforce the national minimum wage) wrote to all employers with information and the 'phone number for enquiries.
March 1999The National Minimum Wage Regulations 1999 received Parliamentary approval. Full guidance was made available and has since been updated - A Detailed Guide to the National Minimum Wage.

1 April 1999

The national minimum wage came into force.

July 1999Employment Relations Act received Royal Assent. The Act contains two NMW provisions.
November 1999

The Government published its evidence to the Low Pay Commission, for the second report. A publicity campaign was launched, targeted at ethnic minority groups in low pay areas.

December 1999The Government published its Supplementary Evidence to the Low Pay Commission.
February 2000

The Government announced an increase in the National Minimum Wage. The Low Pay Commission published their Second Report, and the Government's Response was announced.

1 June 2000The young person's rate was increased from £3.00 to £3.20.
1 OctoberThe NMW Regulations increased the main rate from £3.60 to £3.70 and made a number of minor changes, including how the minimum wage applies to some trainees.
January 2001Low Pay Commission announced that it will produce its third report in two volumes. The first volume to appear in March 2001 and deal with the main adult rate of the minimum wage. The second volume to appear in May 2001 and address other issues such as the youth rate, the age at which the main rate comes into force (currently at age 22) and the accommodation offset.
March 2001The Government published the third report of the Low Pay Commission and accepted recommendation that the main rate should increase from £3.70 per hour to £4.10 per hour on 1 October 2001. They also agreed in principle that the rate should increase again to £4.20 per hour on 1 October 2002 subject to economic conditions.
June 2001

The government published Volume Two of the third report and accepted recommendation that the development rate (including youth rate) should increase from £3.20 per hour to £3.50 per hour on 1 October 2001. They also agreed in principle to a further increase to £3.60 per hour on 1 October 2002 subject to economic conditions.

August 2001Second Annual Report on the national minimum wage published. This shows, among other things, that despite a fall in the number of complaints of underpayments received, the amount of arrears recovered for workers actually increased quite dramatically from £1.2m in 1999/2000 to £3m in 2000/2001. This was achieved as a result of improved case selection and with enhancements to staff training, investigation officers were able to achieve better results.
October 2001Main and development rates of the national minimum wage increased to £4.10 and £3.50 respectively.
October 2002Main and development rates of the national minimum wage increased to £4.20 and £3.60 respectively.
February 2003A consultation paper - NATIONAL MINIMUM WAGE REGULATIONS: CONSULTATION NOTE ON A PROPOSAL TO REPLACE FAIR  ESTIMATE AGREEMENTS  issued on system applying minimum wage to output workers.
March 2003Publication of the Fourth Report from the Low Pay Commisiion and the Government's response.

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