Minimum wage rise replace as TUC chief slams ‘scaremongering and deceptive’ claims
Paul Nowak, head of the Trades Union Congress, criticised ‘doomsday’ warnings about hiking the youth minimum wage – as analysis shows 85% of youngsters are already paid above it
The head of the Trades Union Congress has criticised “doomsday” warnings about hiking the youth minimum wage – as analysis shows 85% of youngsters are already paid above it.
Paul Nowak said warnings about equalising rates are “scaremongering and misleading”. New analysis by the TUC shows that one million 18-20 year olds – 85% – are already paid above the youth minimum wage. And 63% of young people in work are paid at or above the adult national minimum wage so not covered by the youth rate at all, it found.
The TUC urged the Government not to back down in its plans to lift the youth rate amid pressure from critics. It comes amid concerns about unemployment among 18 to 24-year-olds, which hit a five-year high in the final three months of 2025.
The Tony Blair Institute on Sunday warned Labour that hiking the minimum wage could “discourage firms from taking a chance on new employees, particularly younger workers”.
READ MORE: Labour’s pledge to hike minimum wage for young people faces delay
But the TUC slapped down such warnings and said previous minimum wage rises to bring 23 and 24-year-olds, and later 21 and 22-year-olds, in line with adult rates didn’t impact employment rates, according to the Low Pay Commission.
Last month, it emerged the Government could delay its plan to pay young people the same minimum wage as older workers. Labour committed to scrap “discretionary age bands” in its manifesto and to increase the wages of 18 to 20-year-olds so they are paid the same as those over 21.
Mr Nowak said: “The government promised to deliver change. Rowing back in the face of unsubstantiated business lobbying – at real cost to young people’s living standards – would be exactly the wrong approach.”
He continued: “Young people pay the same bills as everyone else and deserve a fair wage for their work. Youth rates are not only unfair, but they’re also increasingly obsolete as most businesses hardly use them.
“Youth unemployment is a serious issue that deserves real solutions, like stronger employment rights, an ambitious jobs guarantee and quality apprenticeships – not doomsday scaremongering and misleading claims about the minimum wage.
“The Low Pay Commission are the trusted experts and should be trusted to finish the job, setting out a plan to abolish the minimum wage youth rates this Parliament.”
The TUC also pointed out that other countries such as France, Germany and New Zealand do not have lower rates for adults aged 18 and above.
In the UK, bosses must pay workers aged between 18 and 20 at least £10 an hour – a figure which will rise to £10.85 in April. Workers aged 21 and over must receive at least £12.21 – rising to £12.71.
In a report published on Sunday, former Labour PM Sir Tony’s think tank said: “The risk is that further rises – including raising the youth rate for under-21s to match the over-21s rate – will discourage firms from taking a chance on new employees, particularly younger workers.
“Set too high, a wage floor can erode the first rung on the career ladder and reduce the churn that underpins a dynamic labour market.”
A Government spokeswoman said: “We’re determined to help young people into work and deliver on our manifesto commitments to make work pay. We remain committed to closing the gap between the adult and youth national minimum wage.”
