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Forum Brief: Budget - Minimum wage

Gordon Brown has announced that the government is to undertake a review of training, pay and employment needs for 16 to 19 year olds.

The study will look at the case for 16 and 17-year-olds being covered by the minimum wage.

Forum Response: GMB

John Edmonds, general secretary of the GMB, said: "Though we welcome the chancellor's commitment to look at extending the minimum wage to 16 to 17 year olds, they should be given the national minimum wage and not create three-tier arrangement whereby they would receive less than their fellow employees."

Forum Response: The Children's Society

Dave Ely, policy manager at the Children's Society, said: "We welcome the decision for the low pay commission to look into the benefits of a minimum wage system for 16 and 17-year-olds. For too long this group of young people, who contribute significantly to the economy, has been discriminated against. They pay taxes and should be protected by the same wages laws as everyone else."The lack of a minimum wage for this age group is particularly a problem for socially excluded young people who depend on this income. We would hope that young people will be invited to participate in the commission's review.

"We are pleased that the minimum wage is being increased from October, 2003, up to £4.50, and £4.85 from October 2004 for people aged over 22 and that those aged 18 to 21 will receive £3.80 from Oct, 2003, and £4.10 Oct 2004.

"But a more realistic minimum wage would be £6.30 for everyone aged over 22, and equivalent increases for those aged 18-22, in order to pull young people out of poverty."

Forum Response: Barnardo's

A spokesman for Barnardo's said: "There is little in the chancellor's Budget to convince us that the government will end child poverty by 2019 without committing extra resources and adopting a more strategic approach."Barnardo's is calling on the government to set a minimum income standard to take all families out of poverty, particularly those with disabled children and to launch a national awareness campaign on disability benefits to encourage take-up. Barnardo's questions the chancellor's strategy for full employment for all regions and nations as a prime route out of poverty.

"There are many parents for whom work is not an option - particularly the parents of Britain's 360,000 disabled children. And even when it is, many working families remain close to or below the poverty level.

"It costs three times as much to raise a child with a severe impairment than a non-disabled child but benefits do not match these needs. Parents with disabled children often struggle to find funds to cover the basic costs of items such as heating, bedding and transport; benefits are inadequate and many families are misinformed about they are entitled to."Having set a target to eradicate poverty, the government must now set a standard to measure what levels of income individuals and families need to live on."

Published: Wed, 9 Apr 2003 01:00:00 GMT+01