'Unfair' rules hit young

Young workers risk being "left hugely out of pocket" by "unfair" minimum wage rules, the TUC has said.

Labour Force Survey data analysed by the union body reveals that more than 700,000 18-20 year-olds could face a minimum wage penalty of more than £2,400 a year due to be being paid at a lower rate.

The minimum wage rose to £11.44 for all workers aged 21 and over in April, but only to £8.60 for 18-20 year-olds, a potential shortfall of £47 a week or £2,438 a year, according to the TUC analysis.

This tiered system is unfair to younger adult workers, says the TUC, and must be overhauled. The government accepted the Low Pay Commission's recommendation to extend the full rise to 21-22 year-olds but has retained a gap between youth and adult rates.

"Too many young workers are still being left hugely out of pocket because of outdated youth rates," said TUC general secretary Paul Novak. "Young people up and down the country are being hammered by the cost of living crisis – like everyone else, they need more money in their pockets now."