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Minimum wage to increase to 10 for under-18s by 2020, Labour Pledge

In a bid to end age discrimination, Labour are proposing to end the £4.35 per hour for under-18s by 2020.  This proposal comes as part of a pledge to increase the national minimum wage to £10 per hour.  Labour states that, for small to medium sized employers to manage such change, it will use fiscal savings to offer monetary support.

Despite their effort to end age discrimination, the proposals have been met with some resistance.  In addition, the independent Low Pay Commission defend youth rates on the basis that they reduce youth unemployment.  They offer an incentive to employ under-18s who are likely to have less experience and lower productivity than older counterparts.  The Institute of Directors highlighted the value in having an independent, objective commission, claiming that politicians are at risk of overlooking the impact of their policies on employers.

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