Labour’s Promise on Minimum Wage Equalisation Left Hanging
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Chancellor John Healey has failed to give a clear timetable for Labour’s pledge to equalise the minimum wage for under-20s, intensifying fears that the party may once again put caution and business concerns ahead of young workers’ pay.
Labour's commitment to equalising the minimum wage for younger workers is looking increasingly shaky, as Chancellor John Healey refused to offer any firm timeline for delivering the policy. In an appearance on BBC's Sunday with Laura Kuenssberg, Healey repeated the government's commitment to the rise, but stressed the need to move carefully, pointing to the risk of worsening youth unemployment.
The recent budget lifted the minimum wage for adults to £13.21 and for under-20s to £11.27, but a much larger increase for younger workers is still needed if equalisation is ever to be achieved. Healey said, "I want to make sure that we can look hard at those trade-offs that inevitably are there between jobs and wages," while insisting that Labour would not walk away from its manifesto promise.
Worries about the sluggish pace of equalisation have already been raised by senior party figures, including housing secretary Angela Rayner. Healey again highlighted the need to work with businesses and trade unions to tackle youth unemployment, which he described as a "moral shame on this nation."
He also said the government intends to preserve spending cuts of more than 2% year-on-year in the run-up to the next election, even as think tanks question whether this approach is sustainable. Chief Secretary to the Treasury Emma Reynolds said the government would avoid "crude cuts" to welfare, arguing instead for a fair and sustainable reduction in the welfare bill. She added that the government is determined to make hard choices while avoiding measures that could drive up public sector costs.