he TUC has published new analysis which reveals more than 700,000 workers aged 18-20 across the UK risk being left “hugely out of pocket” due to being paid a lower rate of the minimum wage. This means that as many as seven in ten workers aged 18-20 could lose out.
The minimum wage pay penalty facing workers aged 18-20 this coming year is an estimated £2,438 a year (for those who work 52 weeks a year), or £47 a week.
The analysis comes ahead of the TUC’s Young Workers Conference this weekend, which focuses on issues facing young workers.
The TUC says that paying a lower rate to younger adults is “unfair” and that the tiered rates system must be “overhauled”.
Young workers are paid a lower minimum wage. The main minimum wage rate is currently £10.42 per hour for those 23 and over. However, it is £10.18 for 21-22 year olds, £7.49 for 18-20 year olds and £5.28 for under 18s.
From April, the minimum wage rises to £11.44 and will be extended to those aged 21 and 22 after the government accepted recommendations from the Low Pay Commission.
The Low Pay Commission has also previously stated that the gap between youth rates and adult rates has widened and has said that there is a consensus on the commission that this should be addressed.
If it is elected into power, Labour has pledged to make sure the minimum wage is a real living wage that people can live on, removing discriminatory age bands to ensure every adult worker benefits – as well as banning zero hours contracts which disproportionately impact young workers.
The TUC says a Labour government would “transform” the lives of young workers with its New Deal for Working People.
TUC General Secretary Paul Nowak said:
“Everyone should be paid fairly for the job they do. But too many young workers are still being left hugely out of pocket because of outdated youth rates of the national minimum wage.
“More than 700,000 workers aged 18-20 face this pay penalty – they are getting less than older workers for doing the same job. Young people up and down the country are being hammered by the cost-of-living crisis – like everyone else, they need more money in their pockets now.
“That’s why we’re backing Labour’s New Deal, which has pledged to introduce a real living wage for workers – as well as banning zero hours contracts which blight the lives of many young workers. It’s time to put an end to low pay Britain.”
