The Greens accuse Labour of breaking a manifesto promise over the youth minimum wage, after reports that the rate for 18 to 20-year-olds will rise by the same 3.9% as the National Living Wage. The Guardian's live blog reports that the Greens say Labour has 'no respect for young people' and that Business Secretary Jonathan Reynolds has not contested the reports.
BBC News now also reports that 18 to 20-year-olds will not get a bigger increase than older workers. The Treasury has not confirmed the rates. The Chancellor, John Healey, is expected to set them out in Wednesday's Budget.
Personnel Today says the plan could end Labour's 2024 manifesto commitment to remove the 18 to 20 rate by 2029. That deadline has not passed, so the pledge is not yet broken. But a rise of the same percentage does not narrow the gap. On the reported figures it would widen in cash terms from £1.86 to about £1.93 an hour.
The move would end a period of faster rises for younger workers. Personnel Today says the youth rate rose 44.9% from 2023 to 2026, against 22.0% for the National Living Wage.
The reported £13.20 for over-21s is just above the Low Pay Commission's central estimate of £13.18, a 3.7% rise, and within its range of £13.02 to £13.34, according to Personnel Today.
Healey told the Times:
"there is always a trade-off between the level of the minimum wage and the employment rate"