On the 30th of October 2024, Rachel Reeves announced a much-anticipated increase in the minimum wage, set to take effect in April 2025.
The National Living Wage for workers aged 21 and over will rise to £12.21 per hour, while the minimum wage for 18–20-year-olds will increase to £10.00 per hour.
Notably, the most significant percentage increase will be for 16–17-year-olds, with an 18% bump bringing their hourly wage up to £7.55.
This is good news for young workers, who currently experience a marked disparity in wages compared to their older colleagues.
But does this change go far enough?
At present, under-18s earn only £6.40 per hour, based on the idea that, as new entrants to the workforce, they have less experience, fewer skills, and require more training.
However, this reasoning raises an important question: are young workers truly receiving the training, support, and fair wages they need to thrive in their roles?
Young workers often find themselves at the bottom of the employment ladder, handling unsociable hours, irregular shifts, and tasks that few others want to do—all for nearly half the pay of their older co-workers.
This wage gap, combined with inconsistent training standards, can make them feel undervalued and overlooked.
In fact, the amount and quality of training varies significantly from one employer to the next.
In some workplaces, a 16-year-old receives the same training as a 21-year-old, while in others, young workers are given minimal guidance.
Without a structured system to ensure fair compensation and proper training, young workers remain vulnerable, often uncertain about what they’re entitled to or how to advocate for themselves.
“It doesn’t seem right that 16-year-olds are stuck at an hourly rate of £6.40 for doing the same work as their older colleagues,” shared one young worker.
“Everyone puts in the same effort and contributes equally, so everyone deserves to be paid fairly."
"I’m grateful to be earning above minimum wage at 17, but it’s frustrating to see such inequality when we’re all working just as hard.”
For young adults who reach financial independence by 18, earning below the National Living Wage can present real challenges, especially in the context of the ongoing cost-of-living crisis, which has seen the price of essentials like food and energy skyrocket since 2021.
According to the Labour Force Survey from June–August 2024, there are currently 3.65 million young people in employment—25,000 more than in the previous year—demonstrating the widespread impact of these wage policies on young workers across the UK.
While the new budget’s wage increases are a step in the right direction, a substantial gap still remains between the wages of young workers and those over 21.
Could we go further?
A system that ensures fair wages, training, and skill-building could support both employers and young workers alike, helping young employees gain the tools they need to succeed in the workforce.
