The head of the Trades Union Congress (TUC) has accused business groups of 'scaremongering' over government plans to equalise minimum wage rates for younger workers. Paul Nowak described warnings about the policy as 'doomsday scaremongering and misleading claims', as new analysis shows that 85% of 18-20 year olds are already paid above the youth minimum wage.
The TUC analysis also found that 63% of young workers are paid at or above the adult national minimum wage, meaning they are not affected by the youth rate. The union body urged the government not to backtrack on its manifesto commitment to scrap age-based wage bands, despite pressure from critics warning that higher wages could discourage hiring.
Prime Minister Sir Keir Starmer's government has faced calls from the Tony Blair Institute to be cautious, with the think tank arguing that raising the youth rate could 'discourage firms from taking a chance on new employees, particularly younger workers'. However, the TUC countered that previous increases for older age groups had no negative impact on employment, citing the Low Pay Commission.
Mr Nowak said: 'Young people pay the same bills as everyone else and deserve a fair wage for their work. Youth rates are not only unfair, but they’re also increasingly obsolete as most businesses hardly use them.' He added that youth unemployment, which hit a five-year high in late 2025, requires 'real solutions' such as better employment rights and apprenticeships, not 'scaremongering'.
The current youth minimum wage for 18-20 year olds is £10 per hour, rising to £10.85 in April, while the adult rate for 21 and over is £12.21, rising to £12.71. The TUC noted that other countries including France, Germany and New Zealand do not have lower rates for adults aged 18 and above.
A government spokeswoman said: 'We remain committed to closing the gap between the adult and youth national minimum wage.' The Low Pay Commission is expected to set out a plan for abolishing youth rates later this parliament.
