Potential slow down on minimum wage hikes for 18-20s

The intention was to gradually increase the rate for the younger age group, ensuring that younger and older workers were receiving the same minimum wage by the end of this Parliament in 2029. 

Business groups had warned that increasing the minimum wage for 18-20s too rapidly will make businesses reluctant to hire this age group. In an interview, Federation of Small Businesses Chair Tina McKenzie said, "you continue to increase costs of employment and you make hiring young people more difficult for small employers, then all that's going to happen is that they will hire less young people."

The minimum wage for workers aged between 18 and 20 is £10 an hour, rising to £10.85 in April. In comparison, the minimum wage for workers aged 21 and over is £12.21 an hour, due to rise to £12.71.

We’ll of course keep you posted with any concrete news, including the Low Pay Commission’s recommended rates for April 2027, which should be published this autumn.