The United Kingdom government has said there is no fixed date for ending the lower minimum wage paid to workers aged 18 to 20, despite an earlier promise by the Labour Party to ensure equal pay protection for all adults.
Pensions Minister, Torsten Bell, said the government remains committed to its election pledge to remove age-based differences in the minimum wage system, but no timeline has been set for implementing the policy.
Bell made the clarification during an interview on BBC Radio, noting that Labour’s manifesto did not specify when the lower wage rate for younger workers would be abolished.
Before winning the 2024 general election, the Labour Party promised to remove what it described as discriminatory age bands in the minimum wage structure.
However, the government has now indicated that the policy may not be completed before the next general election, expected in 2029.
The minister said it was understandable that some voters believed the change would happen during Labour’s first term in office.
Since Labour came to power, the minimum wage for workers aged 18 to 20 has increased by 26 per cent to £10.85 per hour. Workers aged 21 and above received an 11 per cent increase, bringing their hourly wage to £12.71.
Business groups have expressed concerns that rising wage costs for younger workers could discourage employers from hiring them, particularly in the retail and hospitality sectors where many entry-level jobs are available.
The comments followed the release of a report by former cabinet minister Alan Milburn, which revealed that more than one million young people in Britain are currently not in employment, education or training (NEET).
Although Milburn said there was no clear evidence linking higher youth wages directly to rising unemployment among young people, he advised policymakers to act cautiously to avoid worsening the situation.
The UK’s minimum wage rates are set annually based on recommendations from the independent Low Pay Commission, which reviews labour market conditions, inflation and broader economic trends before advising the government.
Earlier this year, the government granted the commission greater flexibility in deciding the pace and timing of any future alignment between youth and adult minimum wage rates.
