Overview

This bill proposes extending the UK's National Living Wage to all workers aged 18 to 24. Currently, a lower minimum wage applies to younger workers. This bill aims to eliminate that disparity and ensure a single, higher minimum wage for all adults.

Description

The National Living Wage (Extension to Young People) Bill amends the National Minimum Wage Regulations 2015 and the National Minimum Wage Act 1998. Specifically:

• It removes the current lower minimum wage rate for 18-24 year olds.
• It alters the age threshold in the legislation to align the minimum wage eligibility with the age of 18.
• It prevents future regulations from creating different minimum wage rates for 18-25 year olds versus those over 25.

Government Spending

The bill will lead to increased government expenditure. The exact figure is not specified in the bill, but it will involve increased sums payable under existing Acts and any expenditure incurred by the Secretary of State in implementing the changes.

Groups Affected

The bill will primarily affect:

• 18-24 year olds: They will receive a significant wage increase if the bill is passed.
• Employers: They will face increased labor costs as a result of the higher minimum wage.
• Government: Increased government spending on benefits and potential job losses due to higher employment costs for businesses, especially smaller ones.

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