"Labour had promised in its manifesto to equalise national minimum wage rates by the time of the next election, saying it was unfair younger workers were paid less. Government sources said equalisation remained the aim but the rise could come more slowly. At the current rates, those between 18 and 20 are paid a minimum of 10 an hour, rising to 12.21 an hour for those over 21."
"Alan Milburn, the former minister and chair of the government's young people and work review, which is due to report in the summer, said the rise in youth unemployment posed an existential risk for the UK and could put a generation on the scrapheap. This is not a short-term phenomenon, it's a long-term one, he told the BBC. We're seeing something dramatic changing in the labour markets."
"From April, the combined cost of employing someone age 21 and over will have risen by 15% since 2024, according to the Centre for Policy Studies. But for 18- to 20-year-olds, the increase is 26%, or by 4,095, which can decrease the risk employers are prepared to take on younger employees. One Treasury source said a slower equalisation was all but certain but added the decision would ultimately be made by the Low Pay Commission."
Ministers are considering slowing the planned equalisation of minimum wage rates for younger workers because youth unemployment has risen. Current minimum rates pay 18- to 20-year-olds 10 an hour and those over 21 12.21 an hour. Official figures show 18- to 24-year-old unemployment rose to a five-year high in late 2025, and excluding pandemic spikes it is the highest in 11 years. The government is examining the pace of equalisation amid concern employers may reduce hiring of younger workers after cost increases. Ministers will submit evidence to the Low Pay Commission, which will make the final decision.
Read at www.theguardian.com
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