Young people are in spiralling debt after years of “wage discrimination” according to a new report from Scotland’s largest trade union body.
The STUC report: ‘Young Workers Won’t Wait’ reveals how, because of low youth rates, 66% of respondents said they were in debt with debt levels in the region of £3,000 – £10,000, whilst only 46% said they could always afford the basics in life, such as food, transport and bills.
The UK’s Minimum Wage (the ‘National Living Wage’) laws allow workers to be paid less based on their age, even if their job, skills, and experience match those of colleagues, a move STUC General Secretary Roz Foyer called “abundantly discriminatory”.
While the minimum wage for workers over 21 is £12.21 it is £10 for workers aged 18-20 and £7.55 for workers aged 16 and 17.
Testimony submitted to the STUC outlined the experience of young workers working full-time for less pay when compared to other colleagues doing the same role.
One respondent noted: “I regularly worked 40-45 hours per week… and did not pursue further education opportunities as I could not afford to do so.
“It was very frustrating to be paid less that my colleagues when I was under 21 as I was doing the same work as them, worse hours, and with no additional responsibilities.”
Ms Foyer also warned the Prime Minister not to “betray” young workers after his promises during the general election to abolish youth rates of pay.
Commenting, STUC General Secretary Roz Foyer, said: “Our report highlights the impact of the abundantly discriminatory rates of pay for young workers. Working alongside colleagues doing the exact same job should result in the exact same pay.
“Age should not define your worth or wage. With 66% of respondents saying they’re in eye watering debt – some as much as £10,000 – resultant from poor pay, it’s clear that discriminatory wage rates are trapping young people into poverty.
“Our message to the Prime Minister is clear: do not betray our young people. During the election, the Labour UK Government made the pledge to abolish youth rates of pay. It’s high time they paid up for young people and gave them a proper pay rise worthy of their work.”
Testimony heard further by the STUC outlined the account of Niamh, a previous retail worker who experienced youth rates of pay:
“Previous to this job, I worked many roles whilst studying at university where age discrimination in pay was prevalent. I was expected to do the exact same job and had the same responsibilities as other members of staff but was paid less simply because of my age.
“I do believe that this is one of the reasons I landed myself in debt as I was working as many hours a week as I could around my studies but was still unable to afford many things.
“I still had rent to pay, bills to be covered and food to put on the table like every other employee but because of my age, I was paid less and likely then struggled more because of this.”
Access the full report ‘Young Workers Won’t Wait’ here: https://www.stuc.org.uk/resources/young-workers-wont-wait-stuc-report-into-minimum-wage-discrimination-with-front-cover.pdf