O’Grady claims younger workers ‘get a raw deal’ as under 20’s see real term wages drop

The national minimum wage for workers aged 16-20 is worth less in real terms than it was in 2008, TUC analysis has revealed.

  • 16-17 year olds working a 40 hour week on the minimum wage are £300 worse off a year in real terms since 2008.
  • 18-20 year olds are £250 worse off a year.

In the same period, rates for employees over 20 have exceeded inflation, resulting in real gains in their incomes.

Today the minimum wage for over 25s will increase by 4.2%, while the rates for younger workers will increase by only 0.9% to 1.4%.

TUC General Secretary Frances O’Grady said:

“Young workers are getting a raw deal, especially those stuck on the minimum wage. As prices rise, their pay simply hasn’t kept up.

 

“More and more people rely on the minimum wage, but the pay rates aren’t increasing fast enough. The government’s target of £9 by 2020 now seems a fantasy. The minimum wage needs a serious boost in the coming years, especially for younger workers.

 

“I’d also encourage more employers to adopt the real Living Wage standard. Not only will it be good for their workers, but to help attract and retain talent.”

Author: Editorial Team

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