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Starmer dismisses minimum wage U-turn as PM confirms rate 'will rise' for youngsters from April

Figures released on Tuesday show nearly one-in-six 18 to 24-year-olds are unemployed.

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Prime Minister Sir Keir Starmer during his visit to a railway depot in South Wales, to highlight the government's investment to transform Welsh railways.
Prime Minister Sir Keir Starmer during his visit to a railway depot in South Wales, to highlight the government's investment to transform Welsh railways. Picture: Alamy

By Danielle de Wolfe and Bronwen Weatherby

Sir Keir Starmer today confirmed the government's plan to equalise the minimum wage for younger and older workers would go ahead, insisting a U-turn was not on the cards.

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It comes after Welsh Secretary Jo Stevens insisted plans had ‘not changed’, amid doubts over youth unemployment figures.

Speaking from Wales, the Prime Minister said he could "absolutely confirm" the rise would happen "from April".

"We have made commitments in relation their wages, including the commitment that the living and minimum wage will go up and that will now happen in April," the PM said on Wednesday.

"So that will be really good news for all young people, and of course, not exclusively for young people, but important to them.

Sir Keir confirmed the party’s pledge to “remove the discriminatory age bands” in the minimum wage system, “so all adults are entitled to the same minimum wage”, would be kept.

"You can reassure young people now. We've made commitments to young people in our manifesto and we will keep to those commitments and including commitment that we would make sure that the living wage and minimum wage will go up this April, which we can absolutely confirm to you will happen.

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Confirming the party would not U-turn on Labour’s manifesto pledge, Ms Stevens vowed to “remove the discriminatory age bands” in the minimum wage system - changes that could be implemented as soon as April.

Prime Minister Sir Keir Starmer attends a Q&A during his visit to a railway depot in South Wales, to highlight the government's investment to transform Welsh railways.
Prime Minister Sir Keir Starmer attends a Q&A during his visit to a railway depot in South Wales, to highlight the government's investment to transform Welsh railways. Picture: Alamy

The MP's comments come after reports that the promise was under review, amid fears the higher cost of employing young people could put off firms from hiring them.

Speaking to the media on Wednesday morning, the minister insisted the government’s position “has not changed”.

The PM’s comments come after The Times newspaper reported the promise was under review, amid fears the higher cost of employing young people could put off firms from hiring them.

Labour came to power promising to equalise the minimum wage for all adults before the next election - a departure from the current rates, which allow young workers to be paid less than their older colleagues.

Some have warned that a wage increase for young people could cause a surge in unemployment, as recruiters might decide to hire older, more experienced candidates.

Jo Stevens speaks to LBC
Jo Stevens speaks to LBC. Picture: LBC

Figures released on Tuesday show nearly one-in-six 18 to 24-year-olds are unemployed.

The figures represent the highest level of youth unemployment in a decade, with business groups warning ministers they are "pricing a generation of young people out of the workplace".

Reform UK MP Richard Tice told LBC the party would consider lowering pay floors for inexperienced 16-24-year-olds, arguing recent hikes have priced them out of work entirely.

He told Ben Kentish: "Young people, by definition, they're learning, they're being trained, they might be on an apprenticeship or whatever, and that's a natural part of the evolution of gaining experience in the workplace. And that's a great thing.

"The evidence is crystal clear that now employers are actively disincentivised from employing young people.

"What a catastrophe. How stupid can anybody be?"

Asked whether Reform would cut the minimum wage for young people to get more of them into work, Mr Tice said the party will be talking about it over the coming weeks.

He said: '"We've got to relook at it. The evidence is immediately there within a matter of six to nine months."