Treasury minister Torsten Bell suggests Labour's pledge to equalise minimum wage for all adults may not be fulfilled before 2030, as youth unemployment surges and a major report warns of a moral crisis.
Treasury minister Torsten Bell has indicated that teenagers may not receive the full minimum wage until after 2030, casting doubt on Labour's manifesto pledge to equalise pay rates for all adults.
Speaking on BBC Radio 4's Today programme, Bell acknowledged the government's commitment to removing 'discriminatory age bands' but declined to set a specific timeline, noting that the Low Pay Commission would provide crucial advice. This stance has sparked debate amid rising youth unemployment and a critical report from former Labour health secretary Alan Milburn, who warned that the cost of young people not in education, employment, or training (Neets) could reach £125 billion annually by the end of the decade.
The Labour manifesto for the 2024 general election promised to equalise the minimum wage for all adults, delivering a pay rise to hundreds of thousands of workers. However, since 2024, the minimum wage for 18-20 year olds has jumped 26% to £10.85 per hour, while the rate for older workers rose 11% to £12.71 per hour. Bell emphasised that the government remains committed to equalisation but stressed that the manifesto does not provide a timeline.
'That's not what it says in the manifesto,' he said, adding that the Low Pay Commission's role is to advise on the appropriate path. Milburn's long-awaited review, published alongside Office for National Statistics data showing Neet numbers have surpassed one million, described the situation as a 'moral crisis'. He noted that Britain is an outlier in the EU, with only Romania having a higher youth Neet rate.
Milburn backed former prime minister Tony Blair's criticism of government policies, including new workers' rights laws and above-inflation minimum wage increases, which have been blamed for making it harder for employers to hire young people. Blair accused the Starmer administration of lacking a 'coherent plan' and holding back business. The ONS figures reveal that 613,000 young people aged 16-24 are economically inactive, a record high. This has intensified fears that rising labour costs are pricing young workers out of jobs.
Milburn called for a 'whole system reset' on education, welfare, and health policy to address the challenge. Bell, however, defended the government's approach, insisting that the commitment to equalise rates remains unwavering. The lack of a clear deadline has left businesses and campaigners uncertain about the pace of change, with many urging a balance between fair pay and employment opportunities for the young
Minimum Wage Youth Unemployment Labour Policy Alan Milburn Report Neets
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