Labour faced swift criticism on Tuesday after media reports suggested the chancellor, John Healey, will pause the process of equalising the lower minimum wage for workers under 21 with the higher national living wage for older workers.
Jonathan Reynolds, the business secretary, did not contest the coverage when asked about it in an interview on the BBC, and officials indicated the party still intends to meet its manifesto commitment but would do so over time and taking account of economic conditions that typically inform annual upratings.
According to The Times, Healey will announce a near 4% rise in the national living wage that applies to those aged 21 and over, with the rate expected to move from £12.71 to about £13.20 — an increase of roughly 3.9% — while increases for younger workers would be slowed amid concerns about youth unemployment.
The Greens condemned the reported change in approach, saying it demonstrated 'no respect for young people', and opposition parties have signalled they will press Labour on whether the move represents a breach of its manifesto promise. Labour sources have stressed the commitment to equalisation remains but that timing will reflect economic and labour market conditions.
The development will be watched closely as Healey prepares to set out details in the budget expected tomorrow, with business groups and youth organisations among those likely to scrutinise how any phased approach will affect employment prospects, incomes and cost-of-living pressures for younger workers.
Political commentators say the decision — and how it is explained — could have consequences for Labour's standing with younger voters, who were a key constituency in the party's election campaign and whose support Labour pledged to protect through the equalisation policy.