Fact Service September 2017

Issue 38

Give younger workers a wage rise


The TUC has warned in its evidence to the Low Pay Commission that the National Minimum Wage (NMW) rates risk leaving younger workers behind.


As the rate for 21- to 24-year-olds is growing more slowly that the amount paid to older workers, TUC analysis reveals that the gap between the pay of people in this age group and those over 25 on the National Living Wage has widened by more than £400 a year.


The TUC is calling for:


• the National Living Wage to be extended to all workers aged 21 and above;


• the rates for 16- to 20-year-olds to be increased; and


• for more resources for enforcement to ensure the new higher rate is being paid to all who qualify. 


TUC general secretary Frances O’Grady said: “Minimum wage pay rates aren’t increasing fast enough and the government’s target of £9 an hour by 2020 now seems a fantasy.”


The TUC wants to see the Low Pay Commission to go beyond the government’s target of 60% of median earnings by 2020 for workers aged 25 and above, and get the National Living Wage to £10 as quickly as possible.


The apprentice rate should be raised to the level of the young workers rate, says the TUC.


In addition, it says that the apprentice rate should only apply to those undertaking intermediate level apprentices who are aged 16-18 and to 19-20 year -olds in the first year of their apprenticeship.


www.tuc.org.uk/sites/default/files/LPCresponse17.pdf