With a new Labour government that claims to want economic growth and better opportunities for young people in the UK, now is the perfect time to change the system so young people no longer get less for the same work done by those older than them. Even amongst countries that do discriminate by age when applying the minimum wage, British 18–20-year-olds get a terrible deal, getting 75% of the adult rate compared to Australia, Belgium, and Ireland, where the rate is 83%, 85%, and 90%, respectively. This is even worse for 16–17-year-olds, where the rate is just 56% of what the national living wage is.
These discrepancies, according to the TUC, mean that around 700,000 18–20-year-olds are missing out on around £2,400 every year. For young people struggling with the cost-of-living crisis and those who may not have strong support networks around them, this money would be a huge help in making sure they can survive on the minimum wage. Many young people, especially those escaping abusive families, rely on it as their sole source of income, leaving them often in a tough position where they must choose between necessities and personal safety.
This pay rise would have very little impact other than being a big help for young people who need the money.
Some may argue that with an equal minimum wage, businesses will be forced to employ fewer young people; however, this is simply not the case. Germany, for example, does not discriminate its minimum wage whatsoever, and their youth unemployment is nearly half of what ours is. As well as this, in recent years the government has lowered the bands for what the ‘adult rate’ is from 25+ to 23+ and has stated the aim of lowering it again to 21+. We have seen no major impact on employment for young people in those age ranges, showing that this pay rise would have very little impact other than being a big help for young people who need the money.
If the Starmer government is serious about growth and giving young people a fair chance at the start of their careers, this should be one of his first moves in building back our country after 14 years of Tory austerity.
