The remit of this report is to review recommendations for uprating the minimum wage; review the level for 16-17 year olds; and consider the operation of the accommodation offset and the treatments of benefits-in-kind. It concludes that for 2006 it is appropriate to continue to increase the minimum wage rate above the rise in average earnings. The recommended rate would be £5.35 for adults, £4.45 youth development rate and £3.30 for 16-17 year olds. A full review of apprenticeship exemptions is recommended. It is also recommended that neither childcare vouchers nor salary sacrifice schemes should count towards the National Minimum Wage. The accommodation offset should continue but there should be clearer guidance and legislation to prevent employers using the device of a separate accommodation company.
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