Plan to increase youth minimum wage could be delayed

Ministers are considering slowing down plans to pay all adults of all ages the same minimum wage, BBC News understands.

Labour committed in their election manifesto to remove "discretionary age bands" and increase the wages of 18-20 year olds so they are paid the same as those over 21.

But government sources have confirmed ministers are interested in delaying that rise, though are unlikely to reverse the commitment entirely.

Speaking to BBC Radio 4's Today programme, UK government's Welsh Secretary Jo Stevens said it remained government policy to equalise minimum wage.

On Tuesday, it was confirmed unemployment had risen to a near five-year high, with the jobless rate among young people at its worst level for more than a decade.

The Office for National Statistics (ONS) said the rate of unemployment rose to 5.2% in the three months to December, up from 5.1% in the three months to November.

Under existing rules minimum wage rules, people aged over 21 must be paid £12.21 an hour, with a lower rate of £10 in place for 18-20 year olds.

Some business figures have argued that moves to push up minimum wage rates by the government have increased costs and deterred hiring.

The Times newspaper first reported that minister were weighing whether to drop the pledge.

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