UK government divided over minimum wage increase in face of youth jobs crisis

Politics The Guardian By Kiran Stacey Policy editor 29 May 2026 18:27 1 min read

Exclusive: Some fear raising rate for people aged 18-20 will exacerbate unemployment while others point to lack of evidence Rising rates of youth unemployment have created a split at the top of government over how fast it should meet its promise to give young people the full minimum wage. Peter Kyle, the business secretary, is understood to believe now is not the time to give 18- to 20-year-olds the full minimum wage, which Labour promised to do in its manifesto. Continue reading...

Exclusive: Some fear raising rate for people aged 18-20 will exacerbate unemployment while others point to lack of evidence

Rising rates of youth unemployment have created a split at the top of government over how fast it should meet its promise to give young people the full minimum wage.

Peter Kyle, the business secretary, is understood to believe now is not the time to give 18- to 20-year-olds the full minimum wage, which Labour promised to do in its manifesto.

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