Minimum wage may harm New Deal

The Low Pay Commission's minimum wage proposals could undermine the government's New Deal scheme to help young jobless people back to work. The commission has proposed a minimum wage of Pounds 3.60 and Pounds 3.20 for 18- to 21-year-olds. But according to the Institute of Fiscal Studies, there are fears that firms might decide to hire better qualified or older workers rather than inexperienced 18- 24-year-olds and train them, as the New Deal would like.