Labour is under fire for allegedly breaching its pledge to equalise the national minimum wage for workers under 21 with the higher living wage that applies to those aged 21 and over. The controversy comes ahead of the Chancellor’s budget announcement, scheduled for tomorrow.
Business Secretary Jonathan Reynolds confirmed that the government will pause the process of bringing the lower wage for under‑21s up to the same level as the living wage. He said the decision was driven by concerns that a rapid increase could push young workers out of the job market.
Chancellor John Healey is expected to announce a modest rise in the overall minimum wage—about 4%—but will slow the increase for younger workers. The living wage, which applies to those 21 and older, is set to rise from £12.71 to roughly £13.20, a 3.9% bump.
Labour’s manifesto pledged a gradual equalisation of the minimum wage, but the party has always indicated that the process would be phased in, taking into account the strength of the labour market and other economic pressures. Critics argue that the pause undermines the pledge and signals a lack of respect for young workers.
In a BBC interview, Reynolds said the government would still aim for equal pay for the same work, but would balance wage increases with the need to keep jobs available for young people. The debate highlights the tension between wage policy and employment concerns in the current economic climate.
Labour’s stance will be clarified in the budget, but the accusations suggest a potential rift between the party’s campaign promises and its policy decisions.
