Nearly half of employers surveyed by the Recruitment and Employment Confederation (REC), the UK trade body for recruitment businesses and employers, expect higher costs if minimum wage rates for younger workers move closer to the adult rate. The findings come as Labour pursues its commitment to remove age-based minimum wage bands for adults.
The REC survey of 235 employers, carried out by Whitestone Insight in September 2026, found that 48% expected costs to rise if the pay gap between younger workers and those aged 21 and over narrowed further. Only 13% expected a positive effect, while 39% said it would have no impact on their organisation. The REC warned that higher wage bills could make employers more cautious about offering entry-level roles, apprenticeships and training.
