Chancellor John Healey to raise minimum wage with slower hikes for youth
John Healey plans to lift the national living wage to about £13.20, while the rate for 18-21-year-olds will rise to roughly £11.27.
In the forthcoming Budget, Chancellor John Healey is set to raise the national living wage for workers 21 and older from £12.71 to roughly £13.20 per hour. The minimum rate for 18- to 21-year-olds will climb from £10.85 to about £11.27, representing a 3.9% increase that is slower than the rise for older employees. Labour’s election platform had promised to scrap age-based wage bands and bring younger workers up to the same level as adults, but the new figures suggest a more gradual approach.
The Treasury declined to provide comment on the specifics. Critics worry that higher wages could deter hiring of young staff, though the TUC points to data showing most young workers already earn above the proposed rate, and the Low Pay Commission says earlier equal-pay moves did not affect job numbers. A review of the youth unemployment crisis by former cabinet minister Alan Milburn is expected soon.
Why it matters
The wage changes affect millions of low-paid workers and signal the government's approach to youth unemployment.
How the sides frame it
MODERATE AGREEMENTBoth camps report the same wage increase figures, but left-leaning coverage presents the change as a gradual approach with balanced commentary, while right-leaning coverage emphasizes broken promises and criticism of the Chancellor’s decision.
LEFT
Left-leaning coverage frames the wage rise as a measured, gradual policy shift, noting both critics’ hiring concerns and data suggesting limited impact on employment.
RIGHT
Right-leaning coverage frames the decision as a betrayal of Labour’s promise, highlighting criticism and portraying the Chancellor’s approach negatively.
The left emphasises
- the youth wage will rise by 3.9%, slower than the adult increase
- critics worry higher wages could deter hiring of young staff
- TUC data shows most young workers already earn above the proposed rate and the Low Pay Commission says earlier moves did not affect job numbers
The right emphasises
- the move abandons Labour's promise to equalise youth and adult wages within the parliamentary term
- critics note the change could widen the wage gap
- Conservative MP Robert Jenrick likened the Chancellor's approach to an ostrich with its head in the sand
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