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?