The decision to freeze the youth rates for national minimum wage (NMW) is wrong, according to the Trades Union Congress (TUC).
Business Secretary, Vince Cable, argued that increasing the level of pay would make it more difficult for young people to find work. However, the TUC has hit back, claiming that there is no evidence that it would have an adverse effect on jobs.
The Coalition agreed to the Low Pay Commission’s (LPC) recommendations of raising the adult NMW from £6.08 to £6.19 and the apprentice rate from £2.60 to £2.65. The youth amounts remain the same.
Chair of the LPC, David Norgrove, insisted that the “right balance” had been struck between the needs of employers and workers.
However, Brendan Barber, General Secretary of the TUC, added: “There is now a danger that young people will view minimum wage work as exploitative.”