The $30 million question: when will teenagers get the full minimum wage?

Treasury minister Torsten Bell has suggested that teenagers may not receive the full minimum wage before 2030, sparking concerns about the impact on youth unemployment and businesses. The comments come as Labour's policy to equalise the minimum wage for all adults has been met with criticism from businesses and former Prime Minister Tony Blair.

The policy has coincided with youth unemployment soaring, with the number of young people not in education, employment, or training (Neets) rising to 1.01 million in the three months from January to March, according to the Office for National Statistics. This is the highest level since the three months to December 2013, when the figures were calculated with a different methodology.

An echo of Sydney's 2024 institutional buy-up

The minimum wage for workers aged between 18 and 20 has jumped 26 per cent to £10.85 an hour since 2024, while the minimum wage for older workers has gone up, but not by as much, rising 11 per cent to £12.71 an hour. The policy has been met with criticism from businesses, with former Prime Minister Tony Blair accusing the Labour administration of lacking a coherent plan and holding back business.

Alan Milburn, a former Labour health secretary,has backed Tony Blair's criticism of Government policies that have been blamed for making it harder for employers to hire young people. In a scathing attack on Labour's policy agenda, Sir Tony singled out measures including new workers' rights laws and the above-inflation uplift to the minimum wage.

Who is the unnamed buyer?

The Treasury minister's comments have sparked concerns about the impact of the policy on businesses and youth unemployment . The Labour party has committed to removing the discriminatory age bands , so all adults are entitled to the same minimum wage, delivering a pay rise to hundreds of thousands of workers across the UK.

However, the policy has been met with criticism from businesses, with some arguing that it will make it harder for employers to hire young people. The Labour party has insisted that it remains committed to equalising the minimum wage for all adults, but has not provided a timeline for when this will happen.

What auditors flagged in the May filing?

The policy has coincided with youth unemployment soaring, with the number of young people not in education, employment, or training (Neets) rising to 1.01 million in the three months from January to March, according to the Office for National Statistics... This is the highest level since the three months to December 2013, when the figures were calculated with a different methodology.

The data showed that 613,000 of these young people were considered economically inactive - meaning they are unable to work or not seeking work - over the period, marking a record high.