Healey risks breaking minimum wage promise for younger workers
Summary
UK Chancellor John Healey said the government would close the minimum wage gap between younger and older workers, but did not say it would happen before the next election. Labour’s 2024 manifesto pledged to remove the age bands, and the latest Budget raised the rates while keeping them different. Healey also said the government would follow through on planned public-spending decisions aimed at reducing debt.Key Facts
- The 2024 Labour manifesto pledged to end the minimum wage gap between adult workers and workers aged 18 to 20.
- The 2026 minimum wage for workers aged 18 to 20 will rise to £11.27 an hour.
- The 2026 minimum wage for workers over 20 will be £13.21 an hour.
- Asked whether the rates would be equal by the next election, Healey said, “We’ll take one step at a time.”
- Healey said the government remained committed to equalising the rates but described the timing as unresolved.
- Healey said the government would weigh the effect of wage increases on jobs and businesses.
- Budget documents set out real-terms cuts for some government departments in future years.
- Healey said the government would carry spending decisions into a 10-year plan and a spending review next year.
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