U-turn quantity 15? Rachel Reeves dodges questions on whether or not Labour will backtrack on plans to spice up minimal wage for younger employees over ‘jobless era’ fears

Chancellor Rachel Reeves today dodged questions on whether the Government will stick to its plans to equalise the minimum wage between younger and older workers.

There are reports that Prime Minister Sir Keir Starmer could be lining up the 15th major U-turn of his premiership by backtracking on plans to boost the minimum wage for younger workers.

In Labour‘s manifesto prior to the 2024 general election, the party vowed to ensure all adults are entitled to the same minimum wage by removing ‘discriminatory age bands’.

But, according to The Times, the promise is under review amid fears the higher cost of employing young people is putting off firms from hiring them.

Office for National Statistics (ONS) figures released yesterday showed how the unemployment rate for 16 to 24-year-olds surged to 16.1 per cent in the three months to December – the highest level since early 2015. 

Speaking at a supermarket in south London, reporters asked the Chancellor twice whether she would delay plans to increase wages for 18 to 20-year-olds.

Ms Reeves did not deny a delay, saying: ‘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.

‘But we do recognise there are challenges and that is why we’re extending the number of further education college places, extending the number of apprenticeship places to help young people get the skills and the experience that they need to move into work.’

It added to confusion over the Government’s position after one of Ms Reeves’ fellow Cabinet ministers earlier insisted the plan to equalise the minimum wage between younger and older workers ‘has not changed’.

Rachel Reeves, visiting a Sainsbury’s in south London, dodged questions on whether Labour will stick to plans to equalise the minimum wage between younger and older workers

There are reports that Prime Minister Sir Keir Starmer could be lining up the 15th major U-turn of his premiership by backtracking on plans to boost the minimum wage for younger workers 

Welsh Secretary Jo Stevens on Wednesday morning insisted there had been no U-turn on Labour’s manifesto pledge 

Welsh Secretary Jo Stevens on Wednesday morning said there had been no U-turn on Labour’s manifesto pledge.

She told BBC Radio 4’s Today Programme she does ‘not accept’ that the minimum wage causes problems for employers.

‘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,’ Ms Stevens said.

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

Sources have told the Daily Mail that that the equalisation process would not be cancelled and that if any change was made it would only involve slowing the process down. 

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

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

The Resolution Foundation think tank last night said the UK’s youth unemployment is now higher than the EU average for the first time since records began in 2000, with the rate across Europe at 14.9 per cent in the final three months of last year.

It is further evidence of the stagnation of the economy, following on from weak GDP figures last week that showed the economy slowing to a crawl – leaving Britain facing its ‘most dismal decade’ in a century.   

Ms Stevens added that there have been ‘many naysayers’ over the minimum wage since it was introduced.

‘People said in 1998 that it caused mass unemployment, and it didn’t,’ she said. ‘And every time there is a rise in the national minimum wage, people complain about it.

‘The fact is, people shouldn’t be on poverty wages.’

Sir Keir has made some 14 policy U-turns since entering Downing Street in July 2024. 

Earlier this week he shelved plans to postpone some council elections for a year, deciding they should go ahead in May after all.