Ministers are facing a backlash from unions after it was suggested that the full living wage for over-18s may be delayed until after the next election.
The Government has committed to abolishing the different levels of minimum wage for those aged over 18, to bring them into line with the National Living Wage that is paid to all workers aged 22 and above.
Labour put the policy in its manifesto ahead of the 2024 general election, in a move it said would “remove the discriminatory age bands, so all adults are entitled to the same minimum wage, delivering a pay rise to hundreds of thousands of workers across the UK”.
It comes after former Labour health secretary Sir Alan Milburn suggested scrapping the policy to abolish different age bands for the minimum wage, as part of his review into the growing youth unemployment crisis.
Pensions minister Torsten Bell indicated that the policy, while contained in the Government’s manifesto, it did not specify that it would be introduced before the next election.
Speaking to the BBC, Bell said: “The manifesto sets out that we should move the rates together over time. It doesn’t set a timeline on that because that’s the important role of the Low Pay Commission.”
When pressed on the Government’s support for the policy, Bell insisted it was “absolutely committed” to equalising the rates, before adding that it would be carried out by the Low Pay Commission “in a way that doesn’t affect employment levels”.
Pressed on whether the Government remained committed to the plans, he replied: “I’ve already said the answer is yes, we’re committed to our manifesto that we stood on and we will deliver it. But that manifesto did not set out the timeline.”
A Government source confirmed to The i Paper that there is “no date” by which the policy will be introduced, despite being contained in the manifesto and it is up to the LPC to decide when to introduce it.
The move has been criticised by union leaders, with Usdaw, the shopwokers’ union, warning against any attempt at a delay.
Joanne Thomas, general secretary of Usdaw, said: “We are deeply concerned by voices within the Government suggesting that Labour’s manifesto commitment to end minimum wage rip-off youth rates should not be delivered in full.
“We are clear that the general election manifesto is for the lifetime of this Parliament, and that is when the policy should be delivered.”
The Trades Union Congress (TUC) also raised concerns over what it described as “cynical attempts by the usual suspects” to try to blame the rise in youth unemployment on the minimum wage hike.
Kate Bell, assistant general secretary of the TUC said: “Youth rates are not only unfair, they’re also increasingly obsolete as most businesses hardly use them.
“Youth unemployment is a serious issue that deserves real solutions, like boosting the quality of work, an ambitious jobs guarantee and good apprenticeships – not more scaremongering and misleading claims.”
It follows comments from Milburn after the publication of his first report into Neets – 16 to 24-year-olds not in education, employment or training.
Speaking to podcast The News Agents, he raised concerns about the prospect of raising the minimum wage in certain sectors, such as hospitality and retail.
“To get the jobs there for them, you’ve got to make sure the employers are willing to take the risk,” he said. “If you’re in, say, the hospitality sector or the retail sector, margins tend to be very low. These tend to be sectors that were really badly hit by cost of living, hospitality in particular.”
What is the minimum wage?
The current National Minimum Wage for those aged 18 to 20 is £10.85. For under-18s it is £8.Workers aged 21 and up are entitled to the full National Living Wage of £12.71.There are special rules for apprentices. Apprentices who are under 19, or in the first year of their apprenticeship, have a minimum rate of £8.Apprentices aged over 19 who have completed their first year can get the full minimum hourly rate of £12.71.
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