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Daily Mirror
Daily Mirror
Politics
Ashley Cowburn

Around 900,000 under-21s 'hugely out of pocket' due to lower rate of minimum wage

Around 900,000 under-21s across the UK are being left “hugely out of pocket” due to being paid a lower rate of the minimum wage, figures show.

The minimum wage "pay penalty" facing young people this year has been an estimated £2.5billion, according to the Trade Union Congress.

They said this works out at an average of £2,800 in lost in wages for every worker under-21 paid less than the full minimum wage.

The current minimum wage stands at £9.50 an hour but there are different rates for everyone under the age of 22.

For 21-22 year olds the hourly minimum wage is £9.18, falling to £6.83 for 18 to 20-year-olds and £4.81 for under-18s.

TUC General Secretary has called for an end to the 'outdated' rates for young people (Getty Images)

These rates are going up in April 2023 to £10.18, £7.49 and £5.28 respectively following recommendations to the Government from the Low Pay Commission.

General Secretary of the TUC Frances O'Grady said: "A fair day's work deserves a fair day's pay.

"But too many young workers are being left hugely out of pocket because of outdated youth rates of the national minimum wage.

"Almost a million workers under 21 face this penalty - getting less than older workers for doing the same job".

She added: "Young people up and down the country are being hammered by the cost-of-living crisis – like everyone else, they need more money in their pockets now.

"It's time to end this glaring injustice so that all workers are entitled to the same minimum wage".

A government spokesperson said: “While we know the priority for younger workers in those first years is to secure work and gain experience, we are nevertheless determined to ensure it pays properly.

"That is why in April 2023, young employees will see significant increases in their National Minimum Wage rates, to £7.49 for those aged 18-20 and £5.28 for those aged under 18.”

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