This year will see an increase in minimum wages for all groups under the age of 25, under new plans to improve earnings across the board. The highest rise will be for those aged between 18 and 20, with a 4.7% increase up to £5.55 per hour.
This is continued with 21 to 24 year olds getting a 3.7% rise of up to £6.95 per hour, and 16 to 17 year olds seeing an increase of 3%, taking their earnings to £3.40 per hour.
It is hoped that this rise will help to support young people who are entering the job market, either after completing their full-time education, or while still studying and trying to support themselves. This news comes at a time where an increasing number of students are being priced out of higher education, due to the lack of finance available for courses, and the lack of opportunities for earning while studying.
There is also an issue with those under 25 who have recently graduated from university, but unable to find a job in the industry that they had been aiming for when they started their studies. The need to take on lower paid jobs can have a significant impact on trying to pay off student loans, starting a family, and taking the first step onto the housing ladder.
It is yet to be seen how the increase in minimum wage will effect employers who currently only pay the minimum rate. Some are predicting that this move may result in job losses to afford to pay higher wages, or firms putting up their own prices as a way of making up the difference.
Ultimately, only time will tell exactly how the difference in pay will affect different groups of people. But for the time being, it is an announcement that those under the age of 25 are welcoming with open arms, as it means that their income will be a little more stable.
