Minimum wages are expected to rise in the Budget, but workers aged 18 to 20 will no longer receive the larger percentage increases used to narrow the gap with older employees, the BBC understands.

The Times reported that both age groups were likely to receive 3.9% increases: the younger workers’ hourly minimum would rise from £10.85 to about £11.27, while the National Living Wage for those aged 21 and over would increase from £12.71 to £13.20.

That would leave separate adult rates in place despite Labour’s manifesto promise to remove “discriminatory age bands”.
The government has increased the younger workers’ rate by 26% since returning to power in 2024, with larger rises over the previous two years intended to advance that pledge.

Business Secretary Jonathan Reynolds told the BBC that equalisation remained the policy but could happen over time.
He argued that improving wages had to be balanced against pressures on the labour market and the availability of good work.

Unison general secretary Andrea Egan said different pay for the same job was “deeply unfair”.
She argued that 20-year-old care workers, teaching assistants and security guards did the same work as older colleagues while facing the same supermarket and petrol prices.

The expected wage announcement accompanies measures Chancellor John Healey describes as giving families “breathing space” over living costs.
The government has announced the removal of import tariffs on 100 food items and an end to the so-called cliff-edge for people receiving carer’s allowance.

Combined with tariff suspensions introduced in June, the food changes could save households up to £21 a year, or 40p a week, the government says.
Reynolds put the combined annual saving at about £500m, while acknowledging that it was not a complete answer to living costs.

Tariff changes also cover fertiliser, intended to help farmers, and kerosene, aimed at households using heating oil.
The Treasury said a full product list would be published on Wednesday, following Tuesday’s announcements.

Reynolds defended reducing import costs where domestic economic interests could be balanced.
But Balwinder Dhoot of the Food and Drink Federation said high energy costs made British food and drink production more expensive than in many neighbouring countries.
The Conservatives argued that higher borrowing costs, taxes and inflation had already outweighed the proposed savings.

The BBC also understands that fuel duty will remain frozen and its 5p discount will continue.
Introduced in 2022 for an intended 12 months, the discount has repeatedly been extended.
The wage figures remain reported expectations rather than confirmed Budget rates.