Despite Hancock’s misguided comments, it is encouraging to hear that the majority of Britons (66 per cent) believe the new higher rate of £7.20 an hour should be paid to those under the age of 25 when introduced in April 2016.
Let us not forget that the new national living wage was enthusiastically welcomed by the Tories when announced in June, with Osborne raising the bar on Labour’s election pledge to increase the minimum wage to £8 by 2020. In spite of this ‘good news’, the Institute for Fiscal Studies recently calculated that three million families would be more than £1,000 a year worse off due to changes in child tax credits. Paul Johnson, IFS director, said: ‘The increase in minimum wage simply cannot provide full compensation for the majority of losses. [It] is just arithmetically impossible.’
A lower minimum wage for those under the age of 25 would actually harm productivity, thereby reinforcing Hancock’s false stereotype. In addition, and as TUC General Secretary Frances O’Grady reflects, ‘If those beginning their careers are given the impression they are worth less, this can only be bad for both their motivation and productivity.’ We need a Government that values and inspires this upcoming generation, rather than one that leaves them behind.
Young people are every bit as productive as their older colleagues, and can handle increased responsibility in the mature manner that is asked of them. Take Will, a current member of the Spear programme. Will felt pressured to go to university and dropped out in his first year. He found himself demotivated and without direction. While on Spear, Will gained himself a job at McDonald’s. With a 4am start each day, Will had already completed a day’s work before he arrived at our training room. Nevertheless he worked hard and regained vision, finding an apprenticeship in recruitment. Next year Will is due to begin university again in a subject that he is passionate about. Like many others his age, Will is a symbol of hard work and sheer determination, and I’d argue that he is far more productive than most.
