Overview
- Pensions minister Torsten Bell told the BBC on Friday that the 2024 Labour manifesto did not set a timetable and that the Low Pay Commission will advise on when to align youth and adult rates.
- Official ONS figures show 1.01 million 16–24-year-olds were not in employment, education or training in January–March 2026, a record high that has intensified pressure on ministers to act.
- Sir Alan Milburn’s review warned the NEET rise could cost up to £125 billion a year and urged ministers to reconsider some policies, including the pace of minimum wage changes.
- Business groups and Milburn say raising youth rates too quickly could raise labour costs in low-margin sectors such as hospitality and retail and risk pricing young people out of jobs.
- Unions say the manifesto pledge should be delivered within this Parliament and warn delaying the removal of age bands will deny hundreds of thousands of young workers a pay rise.