Both employers and workers have adjusted well to the introduction of the minimum wage. Small businesses have been most affected, yet have successfully managed the transition. Each sector has had to adopt its own strategies to cope with the additional pay costs and, for some sectors or types of businesses within them, the adjustment has been considerable. Nevertheless, for the vast majority of employers, the transition has been successful and, consequently, most low-paid workers are receiving their full entitlement. While in general the definitions of a worker, pay and working time have performed well, a small number of anomalies have emerged.
More guidance is needed on voluntary workers and on people undertaking therapeutic activity.
Coverage of students should be more consistent. Young People and the Development Rate 8 The Development Rate for young workers has meant a pay rise for very many young people while not affecting their employment opportunities. Most 21 year olds are already earning at or above the level of the full minimum wage. To include them in the upper threshold, therefore, makes sense. The six-month Development Rate for older workers has the potential to improve their employment prospects.