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Labour faces union backlash over wage delay

By Lydia Whitfield 3 min read
Labour faces union backlash over wage delay - minimum wage
Labour faces union backlash over wage delay

Labour faces fresh criticism from its unions over a manifesto promise.

Torsten Bell, the pensions minister, said the government might postpone lowering the age threshold for the full minimum wage from 21 to 18 until after the next election. The remark drew immediate condemnation from union leaders, who see the commitment as a core part of Labour’s 2024 manifesto.

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Joanne Thomas, general secretary of Usdaw, called the suggestion deeply concerning. “We are deeply concerned by voices within the government suggesting that Labour’s manifesto commitment to end minimum wage rip-off youth rates should not be delivered in full,” she said. Thomas stressed the manifesto was for the full term of this parliament and the policy should be delivered within that timeframe. She acknowledged the government had made a positive start by tasking the Low Pay Commission to equalize the over-18s rate with the national living wage, and said some progress had been made. But she argued that legally allowing young workers to be paid less than older colleagues “undermines their position.”

Maryam Eslamdoust, general secretary of the TSSA transport union, called any delay “disastrous.”

Usdaw represents over 400,000 retail workers. Thomas said the union wanted to help young people into work, but that meant “good quality work” — defined as “full implementation of their Plan to Make Work Pay, improved access to reasonable adjustments, and sustained investment in skills and apprenticeships.”

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Labour’s 2024 manifesto committed to ending “rip-off youth rates” by bringing the age for the full national living wage down from 21 to 18. The policy would address low pay among younger workers, who currently can earn as little as £6.40 an hour at age 18, compared with £11.44 for those 21 and over. The government has asked the Low Pay Commission to study the feasibility of the change. Bell’s comments suggest the policy might not be in place before the next election — now expected in 2029 at the latest.

One union source said the government risked “kicking the can down the road.”

Lowering the age threshold would increase payroll costs for employers in retail, hospitality, and care — sectors already facing pressure from higher minimum wages and rising national insurance contributions. Business groups have warned that moving too quickly could hurt job opportunities for young people. Thomas called for “sustained investment” alongside the wage change rather than using cost as an excuse for inaction.

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The dispute comes as Labour tries to balance its relationship with unions against fiscal realities. The party has faced pushback on other workplace reforms, including plans to ban zero-hour contracts.

A Downing Street spokesperson pointed to the ongoing Low Pay Commission review, which is expected to report later this year.

Lydia Whitfield

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