'Shocking' minimum wage gap hits youngest workers

When Summer Scholes turned 16, two days after her mother died, the first thing on her mind was finding a job to make ends meet.

It was 2021 and Summer says that while studying in Margate, she was working for £4.62 an hour – the minimum wage for under-18s at the time – so that she and her aunt could pay rent and Put food in the refrigerator.

Last September, when she turned 18, she worked in the hotel over the summer, earning £375 for 50 hours a week, while her 21-year-old colleague was legally entitled to earn at least £134 more for the same job. GBP.

There are three different adult minimum wages in the UK, based on age. On Monday, the government will reduce this number to two, but the inequality between those aged 18-20 and those aged 21 and over will remain.

“I strongly disagree with that statement. As a 19-year-old, I see the work that I do and the work that my friends do and I believe we work just as hard, if not harder, than some of the older guys. Better than us,” Sommer told Sky News.

She said she felt undervalued, adding: “I think it should be based on someone’s work ethic and ability to do their job.

“I couldn’t save money for future studies, which is why I’m now at university for a few more years.”

Sky News understands from sources at the Department of Business and Trade that the government believes the pay gap will encourage businesses to retain young workers and avoid them becoming unemployed for long periods of time.

But GMB union official Ross Holden said the cost-of-living crisis did not discriminate on the basis of age and the government was depriving young workers of “the equal earnings to which they are entitled”.

“It is outrageous that those on the minimum wage, who work an average of under 21 hours on average, are pocketing up to £159 a week out of pocket compared to their older colleagues in the same job. There is nothing about age-based pay rates Excuse – it’s a long time to end them.” Overdue. “

Last year, around 34% of employees aged 18-20 were paid between £7.49 (the hourly minimum wage for that age group) and £10.18 (the minimum wage for the next age group), according to the Low Pay Commission, which advises the government. on setting wage standards.

UK at ‘extreme end’ of pay gap

The UK is not the only country to have age-based minimum wage legislation, but it is “in a relatively extreme position in terms of penalizing people over 18,” said economist and Oxford University professor Ken Mayhew.

He said that in France, teenagers under the age of 17 with less than six months of work experience can receive 80% of the minimum wage. In the Netherlands, the minimum age gradually decreases to 21 years, while in the United States, there is a small change in the first 90 days of employment for those under 20 years old.

Professor Mayhew said employers could justify lower wages during training when young workers were less productive, “but frankly I think national legislation assumes that is the case for all 18 to 20-year-olds, This is unreliable”.

Professor Mayhew said some employer groups had previously said they would not employ less experienced adults if they had to pay them equal wages.

But he added that the groups also argued that when the minimum wage was first introduced in 1998, employees of all ages would be priced out of their jobs but that the impact on employment would be “minimal or non-existent”.

According to the Sage Small Business Tracker, small business wages rose by 14% at the end of last year.

The British Chambers of Commerce and the Federation of Small Businesses declined to comment on the upcoming changes to the minimum wage.

The convenience store association did not respond to a request for comment.

The British Retail Consortium said: “The retail industry recognizes the value of its employees, which is why the vast majority of our members continue to be paid above the minimum wage, regardless of age.”

Read more from Sky News:
Energy bills expected to fall less than expected
Disgraced ‘Cryptocurrency King’ Sentenced to 25 Years in Prison

Real living wage?

The Shop, Allied and Allied Workers’ Union called the government’s policy “hugely disappointing” and said all adults should be paid at least £12 an hour.

Businesses that pay all employees £12 (rising to £13.15 in London) are recognized by the Living Wage Foundation (LWF) as paying the so-called real living wage.

Communications director John Hood said: “A lot of times, 18-year-olds are not dependents. They have housing costs, rent, transport costs, council fees to pay.” Tax – same as 21-year-olds pay The fees are the same. “

He said the difference between the minimum wage and a real living wage is “the difference between being able to live with dignity, security and stability and being able to plan for the future”.

Summer, who is employed at Newington Fish Bar in Margate, recently joined the ranks of those on the real living wage.

“It makes me feel more equal and valuable,” she said, “like my work is appreciated.”

A government spokesman said: “Young people have had different pay levels since the minimum wage was introduced in 1998, but this government is giving young people a pay rise to give them more money.

“From 1 April we will increase the national minimum wage for 18 to 20-year-olds by more than 14%, with the total annual pay rise for full-time workers to be more than £2,000.”