Starmer urged to stick to manifesto following reports lifting of youth minimum wage may be delayed UK politics live

"In an interview with Sky News, Tina McKenzie, the FSB's policy and advocacy chair, said: The youth unemployment is the highest in a decade. When will they start to believe what we're saying? She said her message to government was: Take your head out of the sand and realise if you continue to increase costs of employment, and you make hiring young people more difficult for small employers, then all that's going to happen is that they will hire less young people."

"Figures out yesterday showed that the unemployment rate for 18- to 24-year-olds was 14% in the three months to December, which is the highest rate for nearly 11 years excluding Covid. The Times this morning is running a story saying that, in response to concerns about youth unemployment, ministers are considering ditching Labour's manifesto pledge to pay young people the same national minimum wage as older workers."

"The Times says: Business groups have told ministers they are pricing a generation of young people out of the workplace by increasing the cost of hiring workers through rises to the national living wage, wider employment rights and a tax raid on employers' national insurance. In response, ministers are reviewing their promise to equalise national minimum wage rates by the time of the next election."

The Federation of Small Businesses opposes raising the youth minimum wage to match the full adult rate. The FSB warns that increasing employment costs will make hiring young people more difficult for small employers and could reduce youth hiring. Recent figures show 18- to 24-year-old unemployment at 14% in the three months to December, the highest in nearly 11 years excluding Covid. Ministers are reportedly reviewing a manifesto pledge to equalise minimum wage rates after business groups said wage rises, wider employment rights and higher employer national insurance are pricing young people out of the workplace. A decision could come when the government sets the Low Pay Commission remit.

Read at www.theguardian.com