Chancellor John Healey declined on Sunday to guarantee that Labour would bring younger workers’ minimum wage into line with the adult rate before the next election, leaving the timetable for a manifesto commitment uncertain, the Guardian reported.
Labour’s 2024 manifesto promised to close the pay gap for workers aged 18 to 20. The previous week’s budget increased both wage bands by 3.9%, setting the adult rate at £13.21 and the younger workers’ rate at £11.27. Giving both groups the same percentage increase did not bring their rates closer together.
Appearing on the BBC’s Sunday with Laura Kuenssberg, Healey maintained that equalisation remained government policy and denied abandoning the pledge. But he argued that the pace needed to reflect trade-offs between wages and employment, with businesses and trade unions involved in the process.
The uncertainty follows pressure within Labour over the speed of change. Angela Rayner, now housing secretary, warned in June while outside government that the promise had to be delivered.
Healey also said he was prepared to retain spending cuts scheduled before the next election, some exceeding 2% annually. Separately, Treasury chief secretary Emma Reynolds told GB News that welfare reform proposals would come in the new year. She argued that blunt reductions could push people into crisis and shift costs elsewhere in the public sector.