The Newshound

Chancellor John Healey is set to water down Labour's pledge of equal minimum pay for 18-to-20-year-olds in today's Budget

John Healey will commit £15m over three years to mentoring, workplace training and campaigns to prevent misogyny, with Wednesday's Budget expected to formally confirm the fund.
John Healey will commit £15m over three years to mentoring, workplace training and campaigns to prevent misogyny, with Wednesday's Budget expected to formally confirm the fund.

Around 950,000 young people currently have no job, education or training to their name, as Chancellor John Healey readies an announcement of a 3.9% increase in the National Living Wage to £13.20 in today's Budget. The same 3.9% rate is expected to apply to 18-to-20-year-olds, lifting their hourly rate to roughly £11.27 — far below the adult level and a clear retreat from Labour's manifesto commitment to abolish "discriminatory age bands" in pay.

Business Secretary Jonathan Reynolds conceded that equalisation would happen "over time", with businesses warning that wage increases combined with higher national insurance have made it harder to take on young workers.

Unison general secretary Andrea Egan described the smaller rise as "deeply unfair", arguing that 20-year-old care workers and teaching assistants carry out the same work as older colleagues yet face identical prices at the till.

Angela Rayner had previously backed full delivery of the equalisation pledge, exposing a new fault line within Labour on Budget day.

MoreThe TelegraphThe minimum wage is pricing young workers out of jobsDaily MailBungling Labour backtracks on manifesto vow to equalise minimum wage for under-21s after youth jobs crunchHounslow HeraldMinimum wage to rise as younger workers face smaller increase - Hounslow Herald
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