Chancellor John Healey has declined to guarantee that younger workers will be paid the same minimum wage as older workers before the next election, telling the BBC's Sunday with Laura Kuenssberg programme that the Government will take equalisation "one step at a time". Labour's 2024 manifesto committed to removing what it called discriminatory age bands between the adult rate and pay for 18 to 20-year-olds.

Last week's Budget raised all minimum-wage rates by 3.9% from April 2027, but by the same percentage for each age band, so the gap stays. Workers aged 21 and over will rise from £12.71 to £13.21 an hour, while 18 to 20-year-olds will rise from £10.85 to £11.27. Around 2.3 million of Britain's lowest-paid workers are covered by the increase.

Why the timing matters

Healey said he had accepted the Low Pay Commission's recommendations in full, and framed the decision as a trade-off between jobs and wages, amid concern about youth unemployment. Reporting around the interview notes almost one million 16 to 24-year-olds are not in education, employment or training, and unions have previously warned against delaying equalisation.

What is confirmed, and what is not

What is confirmed is the 3.9% rise for every band from 1 April 2027. What is not confirmed is any date for closing the age-band gap: Healey said "there's no question about whether or if. It's a question of when", and said planned spending cuts of more than 2% a year in some areas would be carried through into the next spending review. Until a date is announced, younger workers should plan on the £11.27 rate from April 2027, not on parity.

Editor's note: DailyByte reported Chancellor Healey's remarks on youth wage equalisation earlier on 1 November (see the earlier report on this page's topic); this report adds the confirmed April 2027 rates and the spending-review context.