- The government has not committed to scrapping lower youth minimum wages before 2029.
- Labour previously pledged to remove age-based differences in minimum pay rates.
- The debate comes as more than one million young people are not in work, education or training.
The UK government has declined to set a deadline for ending lower minimum wage rates for workers aged 18 to 20, raising fresh questions about a Labour election pledge to give all adults the same minimum pay protection.
The issue has gained attention as concerns grow over youth unemployment and the rising number of young people who are not in employment, education or training. More than one million people now fall into that category, according to a recent report that warned of the risk of a "lost generation".
Before winning the July 2024 general election, Labour promised to remove what it described as discriminatory age bands within the minimum wage system. The pledge was widely interpreted as a commitment to eventually align the youth minimum wage with the adult rate.
However, ministers have now suggested there is no guarantee that change will happen before the next general election, which is expected by 2029.
A promise without a timetable
Speaking in a BBC radio interview, pensions minister Torsten Bell reportedly said the government remained committed to its manifesto but had never set a timeline for delivering the policy.
Bell reportedly added that voters who expected the reform to be completed during Labour's first term in office had made "an understandable mistake".
The comments appear to signal a more cautious approach to one of Labour's headline commitments on workers' rights.
Since Labour took office, the minimum wage for workers aged 18 to 20 has risen by 26 per cent to £10.85 an hour. For workers aged 21 and above, the rate increased by 11 per cent to £12.71 an hour.
While the gap between the two rates has narrowed, younger workers still earn less than their older counterparts under the current system.
Balancing pay and employment
The debate has become increasingly tied to concerns about youth employment.
Some business groups argue that rapid increases in wage costs make employers less willing to hire younger workers, particularly in sectors such as retail, hospitality and leisure where many people enter the workforce for the first time.
Those concerns resurfaced after former cabinet minister Alan Milburn published a report warning about the growing number of young people outside work and education.
Milburn reportedly said there was no clear evidence that higher minimum wages were directly responsible for rising youth joblessness. However, he urged policymakers to consider the potential impact of future changes and avoid measures that could make the situation worse.
Responsibility for setting minimum wage rates ultimately sits with the Low Pay Commission, an independent body that reviews economic conditions and makes annual recommendations to the government.
Earlier this year, ministers changed the commission's remit, giving it what the government described as "full flexibility" over the pace and timing of any future alignment between youth and adult minimum wage rates.
That move suggests equal pay rates for younger and older workers remain a long-term goal. However, the government's latest comments indicate there is still no clear timetable for when that promise might become reality.
