A British government minister has said there is no fixed deadline to scrap lower minimum wages for workers aged 18 to 20, despite Labour’s earlier pledge to align youth pay with the adult rate.
Britain’s government has confirmed it is not committed to abolishing the lower minimum wage for younger workers before the next general election, expected by 2029, after concerns were raised about rising youth unemployment and fears of a “lost generation”.
Before securing a landslide election victory in July 2024, the Labour Party pledged to “remove the discriminatory age bands” within the minimum wage system so that all adults would receive equal pay protection.
However, pensions minister Torsten Bell said on Friday that the manifesto promise did not include a specific timeline for implementation.
Speaking during an interview on BBC Radio, Bell explained that while the government remains committed to its election pledges, no exact date had been set for ending the lower wage structure for 18 to 20 years olds.
He stated that voters who assumed the policy would be completed during Labour’s first term in office had made “an understandable mistake”.
Since Labour took office, the minimum wage for younger workers has increased by 26% to £10.85 per hour, while workers aged 21 and above received an 11% increase, bringing their hourly rate to £12.71.
Several business groups have argued that the sharp rise in youth wage costs has discouraged employers from hiring younger staff, particularly across retail and hospitality sectors where entry-level jobs are common.
The comments came after former cabinet minister Alan Milburn published a report warning that more than one million young people in Britain are now classified as not being in employment, education or training (NEET).
Although Milburn said there was no clear evidence directly linking higher youth wages to the increase in unemployment among young people, he urged policymakers to proceed carefully and avoid measures that could worsen the situation.
Britain’s minimum wage rates are determined by the independent Low Pay Commission, which advises the government each year after reviewing labour market conditions, inflation and wider economic trends.
Earlier this year, the government revised the commission’s guidance, giving it “full flexibility” over the pace and timing of any future alignment between the youth and adult minimum wage rates.
Goodness Anunobi
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