The adult age for the National Minimum Wage has dropped to 21 but the decision is expected to cost employers an additional 50 million in wages.

From 1 October the earlier age limit of 22 is being revised to reflect the latest change. According to Thomsons Online Benefits, it will affect 85,000 workers who will now benefit from the higher wage rate.

Recent announcements made by the Government also ensure apprentices will be paid at an hourly rate of £2.50.

Employees aged between 18 years and 20 years will now be entitled to a rate of £4.92 per hour, up from £4.83. Workers who are aged less than 18 years will also see their National Minimum Wage rise from £3.57 to £3.64 per hour.