Labour Keeps Youth Wage Plans Vague as Healey Refuses to Set Deadline
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Chancellor John Healey has declined to say when Labour will equalise the minimum wage for under-20s, reinforcing doubts about whether the party can deliver its pledge without damaging jobs and the wider economy.
Labour's pledge to equalise the minimum wage for younger workers is becoming harder to believe, after Chancellor John Healey again failed to set out a clear timetable for doing so. On BBC's Sunday with Laura Kuenssberg, Healey reaffirmed that the government still supports the increase, but insisted it must proceed cautiously because of the possible impact on youth unemployment.
The recent budget increased the minimum wage for adults to £13.21 and for under-20s to £11.27, yet a far bigger rise for younger workers would still be needed to reach equalisation. 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 saying Labour would not abandon its manifesto promise.
Concerns about the slow progress have already been voiced by senior party members, including housing secretary Angela Rayner. Healey stressed the need to work with businesses and trade unions on youth unemployment, which he called a "moral shame on this nation."
He also signalled that the government plans to keep spending cuts above 2% year-on-year until the next election, despite criticism from think tanks that such a course may not be sustainable. Chief Secretary to the Treasury Emma Reynolds said the government would avoid "crude cuts" to welfare and instead pursue a fair and sustainable reduction in the welfare bill. She said the government remains committed to making difficult decisions while avoiding steps that could increase public sector costs.