Minister insists Labour not committed by manifesto to applying national living wage to all over-18s before next election
Good morning. Last night
Alan Milburn suggested that he would like the government to drop its commitment to pay all people over the age of 18 the national living wage. The former Labour health secretary was speaking after he published a major report on the rise in the number of young people not in education, employment or training (Neet) and he implied that when the final report is published in the autumn, with policy recommendations, it will propose changes to
the national living wage/minimum wage system to encourage more firms to hire young people. A change to the “discriminatory age bands” policy seems to be quite high up his list of demands.
For the record, this is what Labour said
in its manifesto.
The
TUC said yesterday that cutting the minimum wage for young workers
would be a mistake – setting the scene for a fierce Labour internal battle over the manifesto pledge.
This morning, in an interview on the Today programme,
Torsten Bell, the pensions minister, hinted that Milburn may get his way. Milburn, the TUC, and everyone else who has read the manifesto, probably assume that, when
Labour said it would “remove discriminatory age bands”, it meant by the end of this parliament.
But it didn’t, Bell claimed. He said:
When the presenter,
Justin Webb, said put it to Bell that people understood that as meaning by the end of this parliament,
Bell replied:
Webb asked him to confirm that Labour is not committed to equalising the rates by the end of this parliament.
Bell replied:
Asked again if the government was committed to the pledge, Bell said:
Milburn is likely to be more happy about this answer than the trade union movement.
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"It's a long document".
The Milburn report looks like it will be a cause to reduce the wages of the young and also to cut benefits for younger people to in order to get them into work.