Labour Considers U-turn on Youth Minimum Wage Amid Jobs Crisis

Published: 18 February 2026. The English Chronicle Desk. The English Chronicle Online

The UK’s Labour government is facing fresh political turbulence as it weighs up a potential reversal of a flagship election pledge to equalise the national minimum wage for younger workers with that of older adults amid mounting concern over rising youth unemployment. Ministers are reportedly considering delaying or modifying plans to remove age-based pay bands — a core manifesto commitment — after data showed youth joblessness at its highest in more than a decade, sparking fears that higher wage costs could deter employers from hiring younger staff.

Labour’s original pledge aimed to abolish lower minimum wage rates for 18- to 20-year-olds, putting them on the same hourly pay level as workers aged 21 and over. However, with youth unemployment now above 16 per cent, significantly higher than the national average and worse than many European counterparts, government insiders are reportedly reassessing the timeline and scope of the policy, amid pressure from business groups warning that higher labour costs are pricing inexperienced workers out of the job market.

Among the options being discussed are delaying implementation until after the next general election, or introducing a phased approach in which only those aged 20 and over are brought into full pay parity initially. Such changes would mark yet another high-profile policy revision by Labour since entering office, underscoring the political challenge of balancing campaign commitments with real-world economic pressures.

Critics from across the political divide have seized on the prospect of a U-turn, arguing that wavering on wage commitments will erode trust in the government’s economic strategy, especially among young voters already struggling to find employment. Supporters of the original policy contend that equal pay for young workers is both a matter of fairness and a long-term investment in the workforce, while acknowledging the need to mitigate short-term impacts on hiring and labour market participation.

As Labour ministers consult with economists, business groups and employment experts in the coming days, the debate over youth minimum wage equalisation appears set to become a central economic and political flashpoint — one that could shape public perceptions of the government’s commitment to both youth opportunity and economic responsibility.