Updated
Updated · The Guardian · May 29
UK Ministers Split on 18-20 Minimum Wage Pace as Youth Joblessness Costs £125 Billion
Updated
Updated · The Guardian · May 29

UK Ministers Split on 18-20 Minimum Wage Pace as Youth Joblessness Costs £125 Billion

5 articles · Updated · The Guardian · May 29
  • A government row has opened over how quickly 18- to 20-year-olds should get the full minimum wage, with Business Secretary Peter Kyle seen as wary of moving fast despite Labour’s manifesto pledge.
  • £125 billion a year in youth unemployment costs, highlighted in Alan Milburn’s report, sharpened the debate after the number of young people not working or studying topped 1 million for the first time in more than a decade.
  • Torsten Bell and the Low Pay Commission say they have not found robust evidence that past youth wage rises hurt employment, even as ministers quietly hope for a lower recommendation when the commission reports again in October.
  • The main minimum wage rose 4.1% to £12.71 this year, while the youth rate jumped 8.5% to £10.85; ministers also changed guidance to prioritize youth employment rates, signaling growing concern inside government.
  • Trade unions and Labour figures are pressing ministers not to dilute the pledge, turning the wage timetable into a wider test of whether the party sticks to its manifesto and broader economic stance.
With youth unemployment costing £125bn, is a higher minimum wage a cure for young workers or a risk to their jobs?
If data shows no job losses from past pay hikes, why is the government delaying its equal pay promise for young people?