Minimum Wage: Young People

Department for Business, Energy and Industrial Strategy written question – answered on 20th November 2018.

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Photo of Andrew Rosindell Andrew Rosindell NATO Parliamentary Assembly UK Delegation, Co Chair, British-Irish Parliamentary Assembly

To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment the Government has made of the potential effect on youth employment rates of the increase in the minimum wage to £8.21 per hour.

Photo of Kelly Tolhurst Kelly Tolhurst Parliamentary Under-Secretary (Department for Business, Energy and Industrial Strategy)

The National Living Wage (NLW) is applicable for those aged 25 or older and will increase in April 2019 to £8.21 per hour. This will see a full-time NLW worker’s earnings increase by over £2,750 compared to its introduction

April 2019’s rate increase is following recommendations from the independent and expert Low Pay Commission (LPC). The detailed assessment made by the LPC in reaching this recommended rate will be found in their Autumn 2018 report, which will be published in due course.

Additionally, the Low Pay Commission also provide recommendations on the youth-related National Minimum Wage (NMW) rates. In April 2019, the NMW for 21-24 year olds will rise to £7.70, the 18-20 year olds’ rate will rise to £6.15, the 16-17 year olds’ rate will rise to £4.35 and the Apprentices’ rate will rise to £3.90. The Low Pay Commission is asked to recommend these rates such that they do not damage the employment prospects of younger workers. Indeed, we have seen youth unemployment (16-24 year olds) decrease by 462,000 workers since 2010.

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