Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • 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
    • Shared parental leave
    • Redundancy
    • Maternity & Paternity
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
    • OHW Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • 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
    • Shared parental leave
    • Redundancy
    • Maternity & Paternity
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
    • OHW Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+

Latest NewsMinimum wageEarly careers

Labour pledges £10 an hour minimum for all ages

by Ashleigh Webber 13 May 2019
by Ashleigh Webber 13 May 2019

Labour will scrap the “youth rate” minimum wage and ensure staff of all ages are paid at least £10 an hour, if it gains power.

It plans to abolish the £4.35 minimum rate that 16 to 17-year-olds are entitled to, which is roughly half the £8.21 minimum for workers aged 25 and over, and increase the national minimum wage and national living wage rates to £10 an hour – which it calls the “real living wage”.

Minimum wage

Almost half a million staff paid below the legal minimum

National minimum wage: What are employers getting wrong?

The party claimed average real pay for 16-17 year olds is “still below its 2006 level” and said that young workers are more likely to be in insecure roles or on zero-hours contracts than their older colleagues.

Labour leader Jeremy Corbyn, who made the pledge at the party’s youth event in Birmingham this weekend, said increasing the minimum rate to £10 per hour would mean the average 16 to 17-year-old will be more than £2,500 better off.

“Equal pay for equal work is hardly a controversial idea, so why are we discriminating against young people?” he said. “You don’t get a discount at the shops for being under 18. But if the person serving you on the other side of the counter is young, they could be on half the wage of their colleagues.

“It’s time to end this discrimination. Young people’s work should be properly valued, not exploited by employers to cut their wage bill. If they’re doing the job, pay them the wage – the real living wage.”

National minimum wage rates (2019-20)

Age 25 and over: £8.21
Age 21 to 24: £7.70
Age 18 to 20: £6.15
Age 16 to 17: £4.35
Apprentice rate: £3.90

The increase would be funded by a reduction in the amount the Treasury pays in in-work benefits. Targeted support would be given to SMEs to help them pay the increased rate.

However, many commentators believe doubling the wage for 16 to 17-year-olds are entitled to would lead to increased youth unemployment.

Paul Johnson, director of the Institute for Fiscal Studies, told the BBC Radio 4 Today programme: “Clearly the risk, given the choice between doubling the wages you’re currently paying 16 and 17-year-olds or not employing them at all … is you will have fewer 16 and 17-year-olds in work”.

Professor Len Shackleton, a research fellow at the Institute of Economic Affairs, accused the Labour party of entering into a “bidding war” with the Conservatives. Last week, the Chancellor said it would look to introduce the world’s highest minimum wage, at 66% of median earnings.

 “You don’t get a discount at the shops for being under 18. But if the person serving you on the other side of the counter is young, they could be on half the wage of their colleagues” – Jeremy Corbyn

“Such a rate hike could raise youth unemployment to levels comparable with those in continental Europe,” Prof Shackleton said of Labour’s proposal.

“The possible dangers of a political bidding war over minimum wages have been highlighted time and time again. Now it looks like we have it and the consequences for employment are likely to be grim.”

Last month the TUC calculated that the average 21-24 year old, earning the £7.70 an hour minimum wage for this age group, receives £800 less a year than those aged 25 and over.

Ashleigh Webber
Ashleigh Webber

Ashleigh is editor at OHW+ and part of the Personnel Today editorial team. Prior to joining Personnel Today in 2018, she covered the road transport sector for Commercial Motor and Motor Transport.

previous post
Blurring of work and home life is the tip of the tech iceberg
next post
Managers lack tools needed to support staff mental health

Leave a Comment Cancel Reply

Save my name, email, and website in this browser for the next time I comment.

You may also like

‘Small spike’ in minimum wage underpayment among 20-24...

13 May 2022

Living Wage employers pass 10,000 mark

11 May 2022

P&O Ferries told to return £11m furlough money...

28 Apr 2022

Government must take over P&O Ferries services, demands...

15 Apr 2022

Insolvency Service launches criminal probe into P&O Ferries...

1 Apr 2022

Ministers withdraw legal threat over P&O Ferries redundancies

1 Apr 2022

National living wage to increase 6.6% today

1 Apr 2022

P&O Ferries: Grant Shapps’ minimum wage plan dismissed

31 Mar 2022

P&O Ferries refuses to rehire workers after ‘final...

29 Mar 2022

New law could make ferry operators pay minimum...

28 Mar 2022
  • What it really means to be mentally fit PROMOTED | What is mental fitness...Read more
  • How music can help to ease anxiety at work PROMOTED | A lot has happened since March 2020, hasn’t it?...Read more
  • Why now is the time to plug the unhealthy gap PROMOTED | We’ve all heard the term ‘health is wealth’...Read more

Personnel Today Jobs
 

Search Jobs

TOPICS

Economics, government & business
Employee Relations
Employment law
Equality & diversity
Global HR
HR practice
HR strategy
Learning & training
Occupational health
Pay & benefits
Recruitment & retention
HR Tech
Wellbeing
All HR topics

WHAT’S HOT

Apprenticeship levy
Brexit
Covid-19 coronavirus
Gender pay gap reporting
Gig economy
Holiday pay
HR tech
IR35
Immigration
People analytics
Zero-hours contracts

JOBS

Post a job
Why advertise with us?
Change Management
Compensation & Benefits
Diversity & Inclusion
Employee Relations
Employment Law
Health & Safety
HR (General)
HR Business Partner
HR Director
HR Consultant
HR Shared Services
HR Systems
People Analytics
Learning & Development
Training
Occupational Health
Organisational Development
Payroll
Performance & Engagement
Recruitment & Resourcing
Talent Management
Wellbeing
Workforce Planning

ABOUT

About Personnel Today
Contact us
Advertising opportunities
Features list 2022
RSS feeds
Advertising specifications
Email Newsletters
Cookies policy
Privacy policy
Terms and conditions

The Personnel Today Awards
The RAD Awards

Employee Benefits
Employee Benefits Awards
Employee Benefits Live

Forum for Expatriate Management

OHW+
OHW+ membership

Whatmedia

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2022 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • 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
    • Shared parental leave
    • Redundancy
    • Maternity & Paternity
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
    • OHW Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+