The Newshound

The cost of hiring a young worker will soar by nearly £5,000 a year under Labour, think-tank analysis warns

Rachel Reeves doing a shift at McDonald's, as the British Chambers of Commerce warns total employment costs have risen roughly 70% over the last decade.
Rachel Reeves doing a shift at McDonald's, as the British Chambers of Commerce warns total employment costs have risen roughly 70% over the last decade.
A data graphic on hiring costs for young workers, as the CPS warns that rising employment costs have already triggered falls in job vacancies and a surge in youth unemployment.
A data graphic on hiring costs for young workers, as the CPS warns that rising employment costs have already triggered falls in job vacancies and a surge in youth unemployment.

The Centre for Policy Studies think-tank calculates that employing an 18-to-20-year-old full-time will cost £20,511 a year from April 2027, up from £15,652 in 2024 — a 31% rise over three years, outpacing inflation by more than threefold. Chancellor John Healey confirmed the latest minimum wage rises at last week's Budget, pushing the National Living Wage to £13.21 an hour.

The CPS says Labour's tax rises and wage hikes make the UK's minimum wage the seventh highest in the OECD — one of the least competitive.

Healey quietly abandoned Labour's 2024 manifesto pledge to eliminate 'discriminatory' youth rates by equalising them with adult pay faster.

British Chambers of Commerce warn total business labour costs have risen roughly 70% over the last decade from tax rises and wage increases combined.

MoreThe TelegraphCost of hiring minimum wage worker to climb by £4,000The SunCost of hiring young workers set to jump nearly £5,000 a year under Labour as taxes hammer businesses and hit job marketDaily Mail NewsCost of employing young people up by three times the rate of inflation under Labour - causing jobs slumpIndexBoxMinimum-Wage Worker Costs to Jump £4,462 by April 2027, CPS Analysis Finds - News and Statistics - IndexBoxcps.org.ukAnnual cost of hiring minimum wage labour rises by over £4,000, CPS analysis shows
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