Chancellor fails to guarantee minimum wage pledge for younger workers
Summary
Chancellor John Healey said the government remains committed to bringing the minimum wage for 18- to 20-year-olds closer to the rate for older workers, but he would not say whether it would happen before the next election. He said the government would weigh the effects on wages and jobs, while also defending planned spending cuts and promising proposals to reduce welfare spending.Key Facts
- Labour’s 2024 manifesto pledged to close the minimum-wage gap for 18- to 20-year-olds.
- The latest budget raised minimum-wage rates by 3.9% for adults and workers under 20, without giving younger workers a larger increase.
- Healey told the BBC that equalisation was a question of when and how quickly, not whether it would happen.
- Healey said the government would consider potential effects on employment and wages and seek agreement with businesses and unions.
- Healey said he was prepared to continue spending cuts planned before the next election, including cuts of more than 2% year on year in some areas.
- Healey said the government would carry its spending plans into a 10-year plan and a spending review next year.
- Treasury chief secretary Emma Reynolds said the government would propose a fair and sustainable way to reduce welfare spending and rejected crude cuts.
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