Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Latest NewsPay & benefitsMinimum wage

Minimum wage freeze proposal could disengage younger workers

by Personnel Today 7 Jan 2010
by Personnel Today 7 Jan 2010

Proposals to freeze the national minimum wage (NMW) for younger workers could disengage a generation already badly hit by the recession, employers have warned.

The Chartered Institute of Personnel and Development (CIPD) this week urged the government to “put jobs before pay rises” by curbing any increase to the NMW during 2010 for employees aged 16 to 21. The Department for Business has refused to rule out the idea, stating the Low Pay Commission would consider the recommendation.

However, Helen Giles, HR director at homelessness charity Broadway, warned freezing pay could lead to low staff morale among those who were already likely to be earning the least.

She told Personnel Today: “It’s important to pay people a reasonable wage. If they are disengaged they do not give their best and, ultimately, you are not boosting productivity. Yet again it’s the poorest working people in society who are going to suffer disproportionately.”

Gillian Hibberd, HR director at Buckinghamshire County Council agreed, and said the pay restraint should apply to all ages.

“All our evidence in the public sector is that younger people have been more adversely affected by the recession than other groups. We don’t want to exploit young people.”

Hibberd added she supported any moves to keep more people in employment, but pay freezes of any kind should apply “across the board”.

The latest unemployment figures out last month found there were 932,000 16- to 24-year-olds out of work in the three months to October 2009.

In a document outlining how to tackle youth unemployment, called Platform 2010, the CIPD said: “In a recession it is vital that the preservation and creation of jobs takes priority over pay increases.

“The current downturn is having a far bigger impact on young people than other age groups, and it is important to avoid any change that makes this group less attractive to employers, particularly SMEs [small and medium-sized enterprises].”









NMW rates


There are three levels of national minimum wage. The rates from 1 October 2009 are:



  • £5.80 per hour for workers aged 22 and older

  • a development rate of £4.83 per hour for workers aged 18 to 21 inclusive

  • £3.57 per hour for all workers under the age of 18, who are no longer of compulsory school age.

Source: HM Customs & Revenue.

However, David Coats, associate director of think-tank The Work Foundation, disagreed. “It won’t be enough [to tempt employers to start recruiting again],” he said. “What you need is to get the economy growing again and business investment rising and jobs being created.”

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

The Chartered Management Institute also said it was “unlikely” a freeze on the NMW would boost employment, but said it would support employers struggling to keep staff.

A Department for Business spokesman said: “The national minimum wage remains one of the most important rights for workers introduced in the past 10 years. As always, the independent Low Pay Commission will consider all the evidence and economic data before making their recommendations on the minimum wage rate – balancing the needs of workers and businesses.”

Personnel Today

Personnel Today articles are written by an expert team of award-winning journalists who have been covering HR and L&D for many years. Some of our content is attributed to "Personnel Today" for a number of reasons, including: when numerous authors are associated with writing or editing a piece; or when the author is unknown (particularly for older articles).

previous post
IT staff transferred to UK are not being paid minimum salary says PCG
next post
Snow problem for HR as cold snap continues

You may also like

Restaurant tips should be included in holiday pay

21 May 2025

Fewer workers would comply with a return-to-office mandate

21 May 2025

Redefining leadership: From competence to inclusion

21 May 2025

Pay awards in real terms could fall for...

21 May 2025

Ryanair demands flight attendants pay back salary increase

21 May 2025

Consultation launched after Supreme Court ‘sex’ ruling

20 May 2025

Uncertainty over law hampering legal use of medical...

20 May 2025

Black security manager awarded £360k after decade of...

20 May 2025

Employers ‘worryingly’ ignorant about stress risk assessments

20 May 2025

UK and EU agree to collaborate on ‘youth...

19 May 2025

  • 2025 Employee Communications Report PROMOTED | HR and leadership...Read more
  • The Majority of Employees Have Their Eyes on Their Next Move PROMOTED | A staggering 65%...Read more
  • Prioritising performance management: Strategies for success (webinar) WEBINAR | In today’s fast-paced...Read more
  • Self-Leadership: The Key to Successful Organisations PROMOTED | Eletive is helping businesses...Read more
  • Retaining Female Talent: Four Ways to Reduce Workplace Drop Out PROMOTED | International Women’s Day...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+