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New minimum wage should apply to all, says SNP

Chancellor George Osborne
Chancellor George Osborne

Almost half of Scottish employees aged under-25 will be left behind due to the UK Government’s decision to limit its new National Living Wage to older workers, the SNP has said.

The increase in the minimum wage to £7.20, announced by Chancellor George Osborne in the summer Budget, only applies to those above this age.

In response to a written parliamentary question posed by Glasgow Central MP Alison Thewliss, the UK Statistics Authority said 43.7% of workers in Scotland aged 16-24 currently earned less than £7.20 an hour.

The figures, correct as of April last year, come from the Annual Survey of Hours and Earnings (ASHE).

Ms Thewliss said: “By only having a rise in minimum wage for those over-25, 160,000 young workers will lose out and be treated differently despite having the same costs.

“Westminster’s unfair cuts have already hurt those on low incomes hardest, and now young people on low incomes are set to bear the brunt of even more cuts, including seeing working tax credits reduced and housing benefit removed for under-21s.

“We need a stronger Scotland Bill – devolving powers over the minimum wage would allow Scotland to ensure better standards of living for all of our workers, not just those over a certain age.”