# Chancellor backs off Labour’s push to equalise minimum wage for under-21s… as rate is set to rise 3.9%

- URL: https://talkfuse.com/story/chancellor-backs-off-labours-push-to-equalise-minimum-wage-for-under-21s-as-rate-is-set-to-rise-3-9/
- Published: 2026-10-28T13:14:25+00:00
- Updated: 2026-10-28T14:14:12+00:00
- Original publisher: Daily Mail (publisher lean: Right)
- Original article: https://www.dailymail.com/news/article-16242691/Chancellor-backs-Labours-push-equalise-minimum-wage-21s-rate-set-rise-3-9.html?ns_mchannel=rss&ns_campaign=1490&ito=1490
- Topics: World

## Key points

- National living wage rises 3.9 per cent to £13.20 an hour.
- No larger increase was announced for workers aged 18 to 20.
- Labour’s pledge to remove age-based wage bands remains without a timetable.

## Summary

The Chancellor has confirmed a 3.9 per cent rise in the national living wage, from £12.71 to £13.20 an hour, but has not announced a larger increase for workers aged 18 to 20. The decision pauses Labour’s recent push towards equalising minimum wage rates for younger workers and leaves its manifesto promise to remove age bands without a timetable.

The article says the current minimum rate for 18 to 21-year-olds is £10.85 an hour, while 16 to 17-year-olds receive £8; London’s separate living wage is £14.80. Businesses have warned that higher wage costs and increased National Insurance contributions make it harder to employ young people, while almost a million are classed as not in employment, education or training. The Chancellor has acknowledged a trade-off between minimum wage levels and employment.

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.