WIREDGOV

Ahead of the Spring Statement tomorrow, new analysis by the TUC today (Monday) shows that a million 18-20 year olds – 85 per cent – are already paid above the youth minimum wage, rendering it not only unfair, but also “obsolete” as only 1 in 7 receives it. 

• New TUC analysis shows the urgent need to abolish youth minimum wage  
• A million young people – 85 per cent of workers aged 18 to 20 – are already paid above the youth minimum wage so only 1 in 7 are paid the youth rate  
• The TUC argues the youth rate is not only discriminatory, but also increasingly obsolete 
• The union body calls out “doomsday” warnings from those calling for Government to hit the breaks on abolishing the rates, and says NEET challenge needs “real solutions not scaremongering”  

700,000 young people – 63 per cent of those in work – are paid at or above the adult national minimum wage so not covered by the youth rate at all. 

Given the majority of employers already pay young people a fair wage, “doomsday” warnings about the impact of equalising rates are “scaremongering and misleading” – says the TUC.  

At the moment, adults 21 and over must be paid £12.21 per hour while those aged between 18 and 20 must be paid £10 per hour.  

This speaks to a fundamental issue of fairness. Young people “pay the same bills as everyone else, and deserve a fair wage for their work” – the TUC says today. 

Unions find that many businesses report they don’t want to deal with this unfairness, nor the administrative burdens of changing workers’ pay as they get older. 

Labour’s manifesto promised to remove discriminatory age bands. Since taking office, they have made important strides. 

Click here for the full press release