Rayner Pushes Higher Wages for 18‑Year‑Olds as Labour Courts Young Workers
Labour deputy leader Angela Rayner is pressing ahead with plans to raise the minimum wage for 18‑year‑olds, despite warnings from business groups that the move could risk pricing young people out of jobs.
Rayner, who also serves as shadow secretary for levelling up, housing and communities, has made improving pay for younger workers a central part of Labour’s pitch to the under‑25s ahead of the next general election. Under the current system, the national minimum wage rate for 18‑ to 20‑year‑olds is set lower than for workers aged 21 and over. Labour’s proposal would bring 18‑year‑olds in line with the full adult rate.
Business Concerns
Employer organisations and business lobby groups have expressed concern that a sharp rise in youth pay could make employers reluctant to hire younger, less‑experienced workers. They warn this could limit opportunities for school leavers and recent college graduates, particularly in sectors such as hospitality and retail where many entry‑level jobs are concentrated.
Some small business owners have also argued that higher wage costs could lead to reduced hours, fewer vacancies, or even job cuts in already tight-margin industries.
Labour’s Position
Labour insists that the change is both fair and necessary. Supporters of the plan argue that 18‑year‑olds face the same living costs as older workers and deserve to be paid accordingly. Rayner has described the current lower youth rate as “discriminatory” and said it unfairly penalises young people simply for their age.
She has also framed the policy as part of a broader commitment to tackling in‑work poverty and improving pay and conditions across the economy.
Political Strategy
The proposal is seen as part of Labour’s broader effort to win over younger voters, who have been disproportionately affected by low pay, insecure work, and the rising cost of living. By closing the gap between youth and adult wages, Labour hopes to position itself as the party most responsive to the needs of young workers.
However, the clash with business groups highlights the balancing act Labour faces — appealing to workers while also seeking to reassure employers that its economic policies will not stifle job creation.
Rayner Pushes Higher Wages for 18‑Year‑Olds as Labour Courts Young Workers
Labour’s deputy leader Angela Rayner is pressing ahead with plans to raise the minimum wage for 18‑year‑olds to match the full adult rate, despite warnings from business groups that the move could make it harder for young people to find work.
Currently, the UK operates a tiered minimum wage system, with lower rates for workers aged 18 to 20. From April 2024, the adult national living wage for those aged 21 and over will rise to £11.44 an hour, while the rate for 18‑ to 20‑year‑olds will be £8.60 — a gap Labour says is unfair and outdated.
Labour’s Rationale
Rayner has framed the policy as a matter of principle, describing the lower youth rate as a form of “age discrimination.” She argues that 18‑year‑olds often face the same living costs — including rent, bills, and transport — as their older colleagues, and should therefore be paid the same for the same work.
“An 18‑year‑old on a shop floor or in a care home works just as hard as someone in their 30s or 40s,” Rayner has said in previous speeches. “It’s wrong that they can legally be paid less just because of their age.”
The policy is also being positioned as part of Labour’s wider agenda to tackle in‑work poverty, strengthen workers’ rights, and appeal to younger voters ahead of the next general election.
Business Concerns
Employer organisations, including the Confederation of British Industry (CBI) and the Federation of Small Businesses (FSB), have expressed caution. They warn that increasing pay for younger workers to the full adult rate could:
-
Reduce youth employment as businesses opt for more experienced workers.
-
Cut training opportunities if employers become less willing to take a chance on school leavers.
-
Squeeze small businesses already struggling with rising costs for energy, rent, and materials.
Some business leaders have urged Labour to phase in any increase over several years rather than making an immediate jump, arguing this would give employers time to adjust.
Political and Economic Context
The proposal comes as the cost of living crisis continues to hit young people particularly hard. Rent increases, rising food prices, and transport costs have eroded disposable incomes, while youth unemployment remains higher than the national average.
Internationally, some countries — such as New Zealand and Germany — have abolished youth rates altogether, paying all adult workers the same minimum wage from the age of 18. Advocates point to these examples as proof that equalising rates need not lead to mass job losses.
Economists, however, remain divided. Some studies suggest higher minimum wages can lift incomes without significantly reducing employment, while others warn that rapid increases can be disruptive, particularly in industries that rely heavily on young workers.
Electoral Strategy
Labour’s plan is part of a broader effort to court younger voters, a group that has tended to lean left but is far from guaranteed to turn out in large numbers. Policies on housing, job security, climate change, and education are expected to feature prominently alongside wage reform in Labour’s youth‑focused messaging.
The policy also serves a symbolic function: drawing a clear contrast between Labour and the Conservatives on the question of fairness in the workplace. While the current government has overseen steady increases to the minimum wage, it has not moved to abolish the youth rate.
What Comes Next
If Labour wins the next election, the policy could be implemented quickly — potentially within the first year in office — unless a phased approach is chosen. Business groups are likely to lobby for exemptions or transitional arrangements, while trade unions and youth advocacy groups will push for swift action.
For Rayner, the proposal is both a test of Labour’s economic credibility and a signal of the party’s willingness to stand firm on its commitment to fair pay — even in the face of business opposition.
Share this content: