Young workers are missing out on £200 million a year in pay because of a major flaw in minimum wage age brackets, a union has claimed.

On the 20th anniversary of the National Minimum Wage (NMW), the TUC has warned that the average 21-24 year-old basic rate worker is earning £800 a year less than over 25s, despite often also battling the same rising bills, having dependents and housing costs.

In the UK, the NMW, applies to all over 25s while the minimum wage applies to workers aged 16 to 24.

Today - on April 1 - the higher rate increases from £7.83 to £8.21, while those aged 21 to 24 will also see their pay rise from £7.38 to £7.70.

However, the TUC is now calling for the Government to bring all over 21s onto the full minimum wage rate - which it argues should also be increased to £10 an hour.

New minimum wage rates from April 2019

*the £3.70 rate apples to apprentices under 19 or in their first year

The TUC first called for the minimum wage to be introduced in 1986 - and in 1999 it was finally enforced, with the rates set by an advisory board to the Government known as the Low Pay Commission.

TUC General Secretary Frances O’Grady said: "Unions played a key role in winning the minimum wage at a time when many were warning that it would bankrupt the country.

"But as we mark its 20 anniversary today, we can see there’s still more to be done.

"Young workers are still getting a raw deal on pay. Their bills aren't any cheaper, but they have to make ends meet with less. That’s just not fair.

"And with in-work poverty rising, we need to make the minimum wage fit for the future by raising it to £10 as soon as possible."

It said an estimated 337,000 21-24s would get a pay rise if they were to qualify for the National Minimum Wage instead.