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.
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