Bungling Labour backtracks on manifesto vow to equalise minimum wage for under-21s after youth jobs crunch

Chancellor John Healey is expected to raise the National Living Wage by 3.9 per cent in the Budget, from £12.71 to £13.20 an hour, while holding back from a larger increase for workers aged 18 to 20. The reported decision would slow Labour’s manifesto pledge to remove age bands and give all adults the same minimum wage, amid concern that higher wage costs are limiting young people’s job opportunities.

The article says workers aged 18 to 21 currently receive at least £10.85 an hour, while the rate for 16- and 17-year-olds is £8; the separate London Living Wage is £14.80. Healey has acknowledged a trade-off between minimum wage levels and employment, and UKHospitality says wage and National Insurance increases are putting pressure on the sector. The article also reports that almost a million young people are not in employment, education or training.