Labour will keep pledge to equalise minimum wage, Prime Minister vows

Labour will stick to its manifesto commitment to equalise the minimum wage between younger and older workers, the Prime Minister has said.

Sir Keir Starmer confirmed the party’s pledge to “remove the discriminatory age bands” in the minimum wage system, “so all adults are entitled to the same minimum wage,” would be kept.

The PM’s comments come after The Times newspaper reported the promise was under review, amid fears the higher cost of employing young people could put off firms from hiring them.

Speaking to reporters at an event in south Wales on Wednesday, Sir Keir said: “We’ve made commitments to young people in our manifesto, and we will keep to those commitments, including the commitment that we would make sure that the living wage would go up this April, which I can absolutely confirm to you will happen.”

While the PM said the living wage would go up in April, it is unclear when the promise to equalise pay will be fulfilled.

Earlier on Wednesday, Chancellor Rachel Reeves twice dodged the question when asked whether she would delay plans to increase wages for 18 to 20-year-olds.

Speaking at a supermarket in south London, she said: “We already have incentives to hire young people with the apprenticeship rate of the minimum wage, but also for no national insurance contributions for the youngest workers.”

She added: “There are more people in work than there were this time a year ago.

“But I do recognise that there are challenges, particularly around young people leaving school, college and university, the Covid generation of young people who did miss out on so much during those years.

“As a Government, we are determined to do everything we can to support them.”

On the BBC’s Today Programme, Welsh Secretary Jo Stevens blamed “unsourced anonymous briefing” for the Times story, insisting it is “not Government policy”.

According to Office for National Statistics (ONS) figures, the unemployment rate for 16 to 24-year-olds surged to 16.1% in the three months to December – the highest level since early 2015.

Ms Stevens told the BBC she does “not accept” the minimum wage causes problems for employers.

She said: “The Low Pay Commission says that the evidence does not show that there is a direct correlation between problems and the raising of the national minimum wage.

“We came into work on a manifesto to make work pay, and that’s exactly what we’re doing.”

Employers must pay workers aged between 18 and 20 at least £10 an hour – a figure which willrise to £10.85 in April.

Older workers aged 21 and over must receive at least £12.21 – rising to £12.71.