Overview

This bill proposes to extend 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 this age-based pay differential, ensuring a single minimum wage for all adults.

Description

The National Living Wage (Extension to Young People) Bill amends existing legislation, primarily the National Minimum Wage Regulations 2015 and the National Minimum Wage Act 1998. Key changes include:

• Removing age-based pay tiers: The bill revokes regulations that allow for different minimum wage rates based on age (specifically for 18-24 year olds).
• Raising the minimum age for lower wage rates: The age threshold for the lower apprentice rate is raised from 19 to 18.
• Preventing future discrimination: A new clause is added to prevent future regulations from creating different minimum wage rates for 18-25 year olds compared to those 26 and over.
• Geographic Coverage: The act will apply across England, Wales, Scotland and Northern Ireland.
• Effective Date: The law will take effect six months after the date it becomes law.

Government Spending

The bill will likely lead to increased government expenditure due to higher payments under the national minimum wage. However, no specific figures are provided in the bill text.

Groups Affected

• 18-24 year-olds: This group will directly benefit from a higher minimum wage, potentially leading to increased earnings.
• Employers: Businesses employing 18-24 year olds will face increased labor costs, potentially impacting profit margins and employment decisions.
• Government: Increased government spending on welfare programs could result, though details are absent from this bill.

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