Government eyes boost to teenage minimum wage
The Government is likely to face strong resistance from the business community over plans to extend the national minimum wage to 16 and 17-year-olds.
Trade unions have welcomed the move but employers say the minimum wage for teenagers will increase bureaucracy and costs.
Matthew Knowles of the British Chambers of Commerce, said: “We are pleased the Government has acknowledged the issues surrounding the minimum wage. We are very concerned that a minimum wage would encourage people to leave school because they would like some cash in their pockets.
“Our members would not want to exploit people, but we do not think the consequences of this change have been thought through.”
The Government’s view has been handed to the Low Pay Commission, which is due to finish its inquiry into the scope of the minimum wage at the end of February.
The Department of Trade and Industry’s report said the proposal would protect Britain’s youngest workers against exploitation.
But the Government said it was against introducing a high minimum threshold as it may encourage young people to leave college to find a full time job.
According to estimates, over half a million people aged 16 and 17 are in work, with ten per cent earning less than GBP3.10 an hour.
About 40,000 were paid less than GBP2.90 an hour.
Trade union Usdaw recently pointed to cases where some teenagers were paid a “paltry” GBP1.25 an hour.
Under the present rules, 18 to 21 year olds earn a minimum of GBP3.80 an hour, while workers over 22 earn at least GBP4.50 an hour.
Sir Bill Connor, Usdaw General Secretary, said yesterday: “We must protect this vulnerable age group and Usdaw is pleased to learn the Government accepted this view in its evidence to the Low Pay Commission. It is a significant breakthrough in our campaign to protect 16 and 17-year-old workers.’
The exact figure for the planned increase has yet to be disclosed.
Tory shadow chancellor Oliver Letwin said the Government’s plan might cause firms to think twice about employing school leavers.
“We would want to be persuaded that there is no risk of preventing young people getting on the employment ladder at that age if they want to.”
