Youth Wage Hike Delayed — What It Means for Workers
UK ministers may delay a uniform minimum wage as youth unemployment hits 16.1%, deepening the youth job crisis and raising fears over pay equality.
Ministers are considering slowing down plans to implement a uniform minimum wage for all ages.
Labour promised in its election manifesto to remove "discretionary age bands" and equalize the pay of those aged 18 to 20 with those over 21.
However, government sources have confirmed that ministers are interested in delaying this increase, although they do not expect to completely reverse this promise.
Jo Stevens, the UK government's Welsh Secretary, stated that a uniform minimum wage remains government policy.
This comes as new job data confirmed that young people are facing the most difficulties in the UK job market, with 16.1% of 16- to 24-year-olds unemployed, compared to the national average of 5.1%.
On Tuesday, it was confirmed that unemployment had reached its highest level in nearly five years, and the youth unemployment rate was the worst in more than a decade.
The Office for National Statistics (ONS) said the unemployment rate rose to 5.2% in the three months to December, up from 5.1% in the three months to November.
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Under current rules, people over 21 are paid £12.21 per hour, while a lower rate of £10 applies to those aged 18 to 20.
Some businesses have said the government's move to increase the minimum wage rate has increased costs and hindered hiring.
The Times newspaper first reported that ministers were considering abandoning this promise.
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