By Karim Hammam
The UK minimum wage is set to rise in the upcoming Budget, but workers aged 18 to 20 will receive a smaller increase than in previous years, according to BBC reporting.
Minimum wage details
The National Minimum Wage for 18-to-20-year-olds is expected to increase by 3.9% from £10.85 to about £11.27 an hour, while the National Living Wage for those 21 and over will rise by 3.9% to £13.20. This is a smaller rise than the 26% increase implemented over the past two years under Labour's pledge to remove age bands.
Government rationale
Business Secretary Jonathan Reynolds said the manifesto commitment to equalise rates remains but will happen over time, balancing labour market pressures. Chancellor John Healey described the measures as marginal fixes.
Cost-of-living measures
The government announced removal of import tariffs on 100 food items, potentially saving households up to £21 a year. Other measures include a permanent 55p per mile tax-free mileage rate for work travel up to 10,000 miles, a taper mechanism for carers' earnings limit starting in 2030, two weeks of paternity pay for self-employed fathers, and additional Post Office drop boxes. Fuel duty will be frozen and the 5p discount extended.
Union criticism
Unison general secretary Andrea Egan called the differential pay "deeply unfair," noting younger workers face the same living costs.
Industry and opposition response
The Food and Drink Federation warned UK production costs remain higher due to energy prices. Shadow Chancellor Andrew Griffith dismissed the measures as "cheaper gherkins" that fail to address rising costs driven by tax increases.
