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Labour may drop minimum wage pledge over youth jobless fears: Report

Youth unemployment has risen to 16.1%, prompting ministers to reconsider Labour’s pledge to equalize minimum wage for all adults amid employer hiring concerns.

  • On Tuesday, ministers began reviewing Labour government plans to equalise the national minimum wage for all adults, with The Times and Sky News reporting possible delays amid youth joblessness concerns.
  • Figures from the Office for National Statistics show youth unemployment rose to 16.1% at year-end, leaving nearly 950,000 18 to 24‑year‑olds not in employment, education or training.
  • Current rates show 18 to 20‑year‑olds earn £10 an hour, rising to £10.85 from April, while workers aged 21 and over receive at least £12.21, increasing to £12.71.
  • Ministers are weighing options including extending the harmonisation timetable, equalising only those over 20, or delaying implementation while awaiting Low Pay Commission advice, with a decision possible within months.
  • Business groups say the Federation of Small Businesses found 45% of small firms recruiting fewer 16 to 20-year-olds, warning they are `pricing a generation of young people out of the workplace` while the government backs a £1.5 billion youth jobs drive and 50,000 apprenticeships.
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The Times broke the news in United Kingdom on Tuesday, February 17, 2026.
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