…this is the number of workers in London who stand to benefit from the National Minimum Wage (NMW) this year, which celebrated its 10th anniversary last month.

When the NMW came into being, wages of as little as £1.20 an hour were common and legal - that’s just £1.38 an hour in today’s prices!

I remember the Conservative Party and others strongly opposing the introduction of this measure. They said the NMW would cost the country 2 million jobs – in fact an extra 2.3 million jobs have actually been created since then.

To date nearly one million low paid employees, two thirds of them women, have benefited from the NMW and more continue to do so.  I know what a difference it makes because I regularly deal with NMW issues in my work as an employment lawyer. 

Presently the NMW rates are as follows:
Workers aged 22 and over - £5.52 per hour
Workers aged 18-21 - £4.60 per hour
Workers aged 16-17 - £3.40 per hour

From 1 October 2008 the NMW rates will increase as follows:
Workers aged 22 and over - £5.73 per hour
Workers aged 18-21 - £4.77 per hour
Workers aged 16-17 - £3.53 per hour

Labour is building on this and has recently announced that it intends to change the current NMW rules on tipping, to ensure that in future tips will be additional to the NWM. When we go to a restaurant or to have our hair cut in Streatham, Balham, Brixton, Clapham or Tulse Hill, and we leave a tip, we expect it to go to the staff member in addition to their pay, not to be processed through the payroll to make up the NMW – dealing with this is a matter of fairness and common sense in my view which is why we are taking action to outlaw this practice.

For more information on the NMW, click here.