Alan Milburn to review rise in youth minimum wage

"The social mobility expert said that unless the government tackled some uncomfortable truths about the labour market there was a risk of creating a lost generation of young people. In an interview with the Guardian, he said the rising overall welfare bill was unsustainable fiscally and economically but insisted that any reform of the system had to focus on righting social injustices first."

"Milburn's intervention over the minimum wage echoes recent warnings from economists that the increase in youth rates which the government is trying to equalise with the adult rate could lead to some being priced out of entry-level jobs. But it is likely to be greeted with dismay from some Labour MPs and unions after the party pledged to end discriminatory lower minimum wage rates for younger workers so that all adults would be entitled to the same legal pay floor."

"As Keir Starmer struggles against a backdrop of difficult poll ratings, Milburn, a veteran of Tony Blair's government, suggested this one could still turn around its fortunes if it was able to generate hope for the future. He said transforming young people's prospects could do that. But he said that without substantive action, the UK was at risk of abandoning a whole generation to a life on benefits and could push them away from mainstream parties towards rightwing populism."

A major inquiry will review the youth minimum wage amid rising inactivity among Britain's young people. The review warns that raising youth rates toward the adult minimum wage risks pricing some young people out of entry-level jobs and exacerbating youth inactivity. Rising overall welfare spending is described as fiscally and economically unsustainable, while any reform is urged to prioritise addressing social injustices. Union leaders have criticised politicians perceived as acting against workers' interests. Transforming young people's prospects is presented as essential to reverse political fortunes and to prevent drift toward long-term benefits dependence and rightwing populism.

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