[UK] ‘Unfair’ minimum wage rates leave under 21s £2.5bn out of pocket

[UK] ‘Unfair’ minimum wage rates leave under 21s £2.5bn out of pocket
08 Dec 2022

The Trades Union Congress (TUC) has warned that nearly 1 million workers under 21 years of age have been left “hugely out of pocket” as a result of unfair minimum wage rates, while the rising cost of living maintains its grip on UK households, Yahoo News reports.

New TUC analysis has revealed that the minimum wage pay penalty facing this age group has been an estimated £2.5bn this year.

This works out to an average of £2,800 in lost wages for every worker under 21 paid less than the full minimum wage.

The main minimum wage currently sits at £9.50. But the rate is £9.18 for 21-22 year-olds, £6.83 for 18-20 year-olds and only £4.81 for under 18s.

Therefore workers aged 18-20 continue to be paid 28 per cent less than the minimum wage. While for those aged under 18, the minimum wage is 49 per cent below the main rate.

A significant majority of workers aged under 21 (70 per cent) reportedly receive less than the full minimum wage.

These rates are going up in April 2023 to £10.42, £10.18, £7.49 and £5.28 respectively, following recommendations to the government from the Low Pay Commission. Nevertheless, the TUC is calling for an overhaul of the tiered-rates system.

In addition, it is reportedly urging a boost to a £15 minimum wage as soon as possible to put an end to low-pay Britain.

The UK is undergoing the longest and most intense wage squeeze in 200 years and is on course to face two lost decades of living standards.

The research has been released at the end of the TUC’s young workers’ month; a period dedicated to promoting trade unions to young workers.

TUC general secretary Frances O'Grady said, “A fair day’s work deserves a fair day’s pay. But too many young workers are being left hugely out of pocket because of outdated youth rates of the national minimum wage.

"Young people up and down the country are being hammered by the cost of living crisis; like everyone else, they need more money in their pockets now."

Ms O’Grady added, “It’s time to end this glaring injustice so that all workers are entitled to the same minimum wage.

“And it’s time for ministers to deliver a plan for a £15 minimum wage so that we can put an end to low-pay Britain for good.”


Source: Yahoo News

(Quotes via original reporting)

The Trades Union Congress (TUC) has warned that nearly 1 million workers under 21 years of age have been left “hugely out of pocket” as a result of unfair minimum wage rates, while the rising cost of living maintains its grip on UK households, Yahoo News reports.

New TUC analysis has revealed that the minimum wage pay penalty facing this age group has been an estimated £2.5bn this year.

This works out to an average of £2,800 in lost wages for every worker under 21 paid less than the full minimum wage.

The main minimum wage currently sits at £9.50. But the rate is £9.18 for 21-22 year-olds, £6.83 for 18-20 year-olds and only £4.81 for under 18s.

Therefore workers aged 18-20 continue to be paid 28 per cent less than the minimum wage. While for those aged under 18, the minimum wage is 49 per cent below the main rate.

A significant majority of workers aged under 21 (70 per cent) reportedly receive less than the full minimum wage.

These rates are going up in April 2023 to £10.42, £10.18, £7.49 and £5.28 respectively, following recommendations to the government from the Low Pay Commission. Nevertheless, the TUC is calling for an overhaul of the tiered-rates system.

In addition, it is reportedly urging a boost to a £15 minimum wage as soon as possible to put an end to low-pay Britain.

The UK is undergoing the longest and most intense wage squeeze in 200 years and is on course to face two lost decades of living standards.

The research has been released at the end of the TUC’s young workers’ month; a period dedicated to promoting trade unions to young workers.

TUC general secretary Frances O'Grady said, “A fair day’s work deserves a fair day’s pay. But too many young workers are being left hugely out of pocket because of outdated youth rates of the national minimum wage.

"Young people up and down the country are being hammered by the cost of living crisis; like everyone else, they need more money in their pockets now."

Ms O’Grady added, “It’s time to end this glaring injustice so that all workers are entitled to the same minimum wage.

“And it’s time for ministers to deliver a plan for a £15 minimum wage so that we can put an end to low-pay Britain for good.”


Source: Yahoo News

(Quotes via original reporting)

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