Government responds to Youth Select Committee’s report into cost of living crisis

The Department for Business and Trade has welcomed the Youth Select Committee’s inquiry and report into the impact of the cost of living on young people's wellbeing.

Responding to the recommendations regarding employment made in the report, the Department recognised that the youth labour market can be more sensitive to economic shocks, outlining the measures that would be taken in regards to the National Minimum Wage.

Regarding the Committee’s recommendation on equalising wages for all workers of legal adult age, the Department for Business and Trade confirmed that the Government has committed to extending age eligibility for the National Living Wage to those aged 18 and over.

The Department for Business and Trade advised that the Low Pay Commission (LPC) has been asked to recommend a change in the rate for the National Minimum Wage for 18-20 year olds – to apply from April 2025 – in order to narrow the gap with the National Living Wage.

Under the previous government, the Department for Work and Pensions had also welcomed the Committee’s inquiry and in their response highlighted the existing schemes and cost-of-living support available to young people. The previous government had also reiterated its commitment to support the Access to Work grant scheme, Disability Confident employer scheme and other local initiatives to support people with disabilities and people of ethnic minorities.

The Youth Select Committee found in their report that the cost of living crisis has had a negative impact on young people, across many aspects of their lives. Food and financial insecurity, not being able to afford nutritious lunch, lack of affordable transport and high costs of student accommodation have had detrimental effects on young people’s mental and physical health. The Committee’s report also highlights that young people from marginalised communities are more likely to be impacted by the cost of living crisis.

The Youth Select Committee launched its inquiry last August to understand the full impact of the cost of living crisis on young people in order to set out key changes and proposals to the government. The Committee received 24 written submissions and held five oral evidence sessions and published its findings in March 2024.

The Youth Select Committee gives young people the opportunity to scrutinise and hold inquiries into topics that matter to them. The inquiry was preceded by a nationwide ballot of over half a million young people, who declared the cost-of-living crisis as their biggest concern.