Age law 'threat to minimum wage'

Laws being introduced on Sunday, which ban age discrimination at work, could endanger the minimum wage system, a business group has warned.

Workers aged over 21 currently receive more than their younger colleagues. The British Chamber of Commerce (BCC) said this may be considered discriminatory and be open to legal challenge under the new legislation.

But the government said the different rates were allowed by the law to protect younger workers.
It was one of the areas where discrimination had been ruled to be "objectively justified", a Department of Trade and Industry spokeswoman said.

"Our concern is that if we did not protect the development bands in this way, some employers may lay off younger workers."

On the same day as the age legislation comes in, the minimum wage for people over 21 will rise by 35p to £5.35 an hour. The rate for workers aged 18-21 will rise by 20p to £4.45 an hour, while workers aged 16 to 17 will get a 30p rise to £3.30 an hour.

"The government's own minimum wage law discriminates against people on the grounds of age," Olly Scott, BCC spokesman told BBC News.

"They are in a pickle. If this were the subject of a legal challenge, based on the new age law, the government may put the minimum wage rates of the those aged 21 and under, up to the same level as the over-21s."

Read the full story on the BBC website