UK government considers reducing the increase in youth minimum wage

The UK government led by Prime Minister Burnham is considering reducing the planned increase in the youth minimum wage. This year, the UK’s minimum wage rose by 4.1% to £12.71 ($17.19), and the wage for young adults increased by 8.5% to £10.85. The rate for the 16-17 age group rose by 6% to £8.00. However, according to informed sources, the Prime Minister’s Office and the Treasury are now revisiting these plans due to concerns that the policy could make employers less willing to hire young workers. Burnham has made addressing the issue of nearly 1 million 16-24-year-olds who are not working, not in training, or not in education a priority for his government. Officials are examining whether the increase in wages for young workers has an adverse effect on hiring. According to these sources, officials are interested in the Dutch model, which has several minimum wage tiers according to age. In the Netherlands, workers aged 21 and over earn €14.99 ($17.39) per hour. This drops to €7.50 for 18-year-olds and as low as €4.50 for 15-year-olds.