Ministers may slow youth minimum wage rise amid UK unemployment fears

The Guardian - World NewsEN 4 min read 100% complete by Jessica Elgot and Tom KnowlesFebruary 18, 2026 at 12:40 PM

AI Summary

medium article 4 min

The UK government is considering slowing down the planned equalisation of the minimum wage for younger workers due to rising youth unemployment. Official figures show youth unemployment among 18- to 24-year-olds has reached a five-year high. Ministers are concerned that rapidly increasing the minimum wage for younger workers, currently £10 per hour for 18-20 year olds compared to £12.21 for those over 21, could further deter employers from hiring them. A slower rise would mean the government breaks its manifesto target of equalising the rates before the next election. The Low Pay Commission, which advises on the minimum wage, will ultimately decide after reviewing evidence, including advice from ministers. Business groups have voiced support for delaying the equalisation.

Key Entities & Roles

Key Player Opposition Context

BBC 40% Treasury 40% Kate Shoesmith 50% Centre for Policy Studies 50% British Chambers of Commerce 60% Alan Milburn 60% United Kingdom 70% Low Pay Commission ×270% Labour Party (UK) ×280%

Keywords

youth unemployment 100% minimum wage 90% equalisation 80% low pay commission 70% national minimum wage 70% labour market 60% government policy 50% economic impact 40%