Another Labour manifesto pledge is under threat, with ministers weighing whether to abandon plans to pay young people the same national minimum wage as older workers.
The move comes as youth unemployment hits its highest level in more than a decade. Almost one in six people aged 18 to 24 are currently out of work, according to official figures released on Tuesday.
Within Government, there are growing concerns that the policy may be contributing to the problem by discouraging employers from hiring younger workers.
Business groups have urged ministers to rethink the proposal, warning it risks “pricing a generation of young people out of the workplace”. They argue that rising costs – driven by increases to the national living wage, expanded employment rights and higher employers’ national insurance contributions – are making it more expensive to take on staff.
As a result, ministers are now reviewing their pledge to level national minimum wage rates by the time of the next election.
More to follow.
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