The party pledged to remove adult age bands from the minimum wage, meaning younger workers would eventually receive the same statutory rate as those aged 21 and over.
However, Business Secretary Jonathan Reynolds has declined to dispute reports that the process is being slowed amid concerns younger people could be priced out of jobs.
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Speaking to the BBC, Reynolds said the commitment still applied but added it had “always been clear it would happen over time” and that Government would take the strength of the labour market into account.
Pubs warned over age band changes
The shift follows concerns raised by the pub sector when Labour first set out plans to remove the age bands in 2024.
At the time, The Morning Advertiser (MA) reported warnings that putting younger and inexperienced workers on the same rate as older employees could discourage pubs from taking them on.
Emma Gibbon, operator of the Plough in Cheltenham, questioned why businesses would employ someone “young and inexperienced” if they could hire a more experienced worker for the same wage.
At the time, British Institute of Innkeeping (BII) chief executive Steve Alton warned removing the bands could increase wage costs for 18 to 21 year olds by around a third and potentially discourage operators from employing younger team members.
UKHospitality similarly urged Government not to rush changes to the age bands amid already rising labour costs.
Manifesto pledge questioned
Labour’s manifesto committed the party to removing the age bands so all adults would eventually be entitled to the same minimum wage.
The Green Party has now accused Labour of breaking that pledge following reports the 18 to 20 rate will rise broadly in line with, rather than faster than, the adult rate next April.
The national minimum wage for 18 to 20 year olds is expected to increase from £10.85 to around £11.27 at the Budget (28 October), while the national living wage for workers aged 21 and over is expected to rise from £12.71 to around £13.20.
Reynolds said Government wanted both “good wages” and “good work”, adding labour market pressures would be taken into account when setting rates.
