The minimum wage is pricing young workers out of jobs

The triple lock was the most revered sacred cow in British politics. Economists warned that it was unsustainable, but ministers looked away, too afraid of the electoral consequences of being honest about the burgeoning cost of the state pension. But now that Andy Burnham has suggested that he would reform the mechanism – albeit after the next election – the title of “most untouchable policy” seems to have changed hands. The negative effects of dramatically increasing the minimum wage , and in particular the youth rate paid to 18 to 20-year-olds, are now undeniable.

Youth unemployment is at a 10-year high, in no small part because employers have been put off from hiring inexperienced but increasingly expensive younger workers. Swathes of first-rung jobs have disappeared. The result? Many young people are getting caught in the welfare trap, with around one million of them now not in work, education or training. The question is whether, now the damage has been done, anyone will do what is required to rectify it.

Reports suggest that John Healey might go part of the way towards addressing the issue, abandoning Labour’s prior pledge to entirely close the gap between the youth and adult rates of the minimum wage. That is good as far as it goes, but it seems unlikely that the Chancellor will take more radical action, such as freezing the rate in cash terms. The minimum wage, like the triple lock, was introduced with good intentions. But it was never envisaged that it would rise to its current levels.

The youth rate has almost doubled in real terms since 1999. It is time for a re-think.