MINIMUM WAGE

Pay living wage at 18, government urged

The Low Pay Commission has advised ministers to phase out age differentials in the national living wage
Business groups are opposed to dropping youth rates, which affect up to 1.7 million workers under the age of 21
Business groups are opposed to dropping youth rates, which affect up to 1.7 million workers under the age of 21
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Hundreds of thousands of 18 to 20-year-old employees should be paid the adult minimum wage rate, according to the government’s official adviser on low pay.

The recommendation from the Low Pay Commission would mean a 33 per cent pay rise for a 20-year-old on the youth rate of £8.60 an hour to the new adult rate of £11.44 an hour, if enacted on April 1, when the annual rises in the adult and youth rates take effect. The government has rejected the proposal.

The commission acknowledged that such a rise could have a significant impact on employment prospects for this age group and would need to be monitored closely. As such it called for the 18 to 20-year-old national living wage (NLW) rate to be