Healey’s Minimum Wage Delay Threatens Labour Pledge to Close Youth Pay Gap

Chancellor John Healey has indicated that younger workers may not receive the same minimum wage as older employees before the next election, potentially breaking a Labour manifesto commitment.

In 2024 Labour pledged to eliminate ‘discriminatory age bands’, promising to close the pay differential between the adult minimum wage and the rate for 18‑ to 20‑year‑olds.

However, in last week’s Budget Healey announced that younger workers would receive the same increase as older staff, which has widened the gap between the two rates for the current year.

By 2026 the hourly rate for 18‑ to 20‑year‑olds will increase to £11.27, whereas workers over 20 will be entitled to a minimum of £13.21 per hour.

During a BBC interview broadcast on Sunday, Healey was asked whether younger workers would receive the same minimum wage as older employees by the time of the next election.

“We’ll take one step at a time,” he responded, indicating that Labour may postpone its plan to close the pay gap until after the next election.

The shift is likely to provoke anger among trade unions and party members on the left.

Healey added that Labour remains committed to the goal, but hinted that the equalisation plan could be delayed, partly to make hiring younger staff more attractive for businesses.

“There is no question of whether or if; it’s a question of when and how fast,” he said.

“I want to ensure we can carefully examine the trade‑offs between creating jobs and raising wages.”

“I want to bring businesses and trade unions on board, along with the government, because together we must address what is currently a moral shame on this nation: a million young people who are being written off, with no realistic prospect of entering the workforce and contributing to the country’s future.”

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