[UK] Government takes steps to end discriminatory age bands

The UK Government took another step towards its manifesto commitment to deliver a genuine living wage for working people on August 5 by setting out new considerations for the Low Pay Commission (LPC) when recommending next year’s National Living Wage and National Minimum Wage, GOV.UK reports.

Around 3 million workers benefited from its 2024 decision to include the cost of living in the LPC’s remit for the first time. 

This reportedly led to a record cash increase in the Minimum Wage for apprentices and those under 18, and a £1,400 annual boost for full-time workers on the National Living Wage from April.

According to the government, higher wages for the lowest-paid workers provide greater financial security for families and mean more money in the pockets of working people to spend on the things they need - supporting businesses and driving economic growth across the country as part of the Plan for Change.

With younger workers being held back by discriminatory age bands, the updated LPC remit is reportedly intended to drive forward the Government’s commitment to delivering a single adult pay band.

The LPC will consult with employers, trade unions and workers on narrowing the gap between the 18–20-year-old rate of the National Minimum Wage and the National Living Wage and will put forward recommendations on achieving a single adult rate in the years ahead.

In addition, the remit will ensure that the LPC continues to actively consider the cost of living in its recommendations for National Living Wage rates to apply from April 2026.

Business Secretary Jonathan Reynolds said, “Low pay drags down living standards for our workers and in turn hurts our high streets and local businesses.

“This Government’s Plan for Change will put money back in people’s pockets, with this new remit marking the next step in considering how we ensure a fair deal for our lowest-paid workers while maintaining a competitive economy that boosts businesses and their employees alike.”

Deputy Prime Minister Angela Rayner said, “We promised to make low pay a thing of the past, and deliver a wage people can live on, and that is exactly what this government is determined to deliver.

“We have already taken bold action to Make Work Pay with more than 3 million workers seeing a huge boost in their pay following our increase to National Minimum and Living Wage.

“This remit is the next milestone in our plan to get more money in working people’s pockets, raise living standards in every part of the UK, and get our economy growing.”

Chancellor of the Exchequer Rachel Reeves said, “We are delivering on our promise to make sure every worker receives a fair wage.

“Fair pay which supports working families is integral to our Plan for Change, because when working people are properly rewarded with more money in their pockets, businesses thrive and our entire economy benefits.

“To ensure the right balance is struck between the needs of workers, business affordability, and the wider economy, the LPC is being asked to consult on several issues before recommending the new rates.”

Source: GOV.UK

(Quotes via original reporting)

The UK Government took another step towards its manifesto commitment to deliver a genuine living wage for working people on August 5 by setting out new considerations for the Low Pay Commission (LPC) when recommending next year’s National Living Wage and National Minimum Wage, GOV.UK reports.

Around 3 million workers benefited from its 2024 decision to include the cost of living in the LPC’s remit for the first time. 

This reportedly led to a record cash increase in the Minimum Wage for apprentices and those under 18, and a £1,400 annual boost for full-time workers on the National Living Wage from April.

According to the government, higher wages for the lowest-paid workers provide greater financial security for families and mean more money in the pockets of working people to spend on the things they need - supporting businesses and driving economic growth across the country as part of the Plan for Change.

With younger workers being held back by discriminatory age bands, the updated LPC remit is reportedly intended to drive forward the Government’s commitment to delivering a single adult pay band.

The LPC will consult with employers, trade unions and workers on narrowing the gap between the 18–20-year-old rate of the National Minimum Wage and the National Living Wage and will put forward recommendations on achieving a single adult rate in the years ahead.

In addition, the remit will ensure that the LPC continues to actively consider the cost of living in its recommendations for National Living Wage rates to apply from April 2026.

Business Secretary Jonathan Reynolds said, “Low pay drags down living standards for our workers and in turn hurts our high streets and local businesses.

“This Government’s Plan for Change will put money back in people’s pockets, with this new remit marking the next step in considering how we ensure a fair deal for our lowest-paid workers while maintaining a competitive economy that boosts businesses and their employees alike.”

Deputy Prime Minister Angela Rayner said, “We promised to make low pay a thing of the past, and deliver a wage people can live on, and that is exactly what this government is determined to deliver.

“We have already taken bold action to Make Work Pay with more than 3 million workers seeing a huge boost in their pay following our increase to National Minimum and Living Wage.

“This remit is the next milestone in our plan to get more money in working people’s pockets, raise living standards in every part of the UK, and get our economy growing.”

Chancellor of the Exchequer Rachel Reeves said, “We are delivering on our promise to make sure every worker receives a fair wage.

“Fair pay which supports working families is integral to our Plan for Change, because when working people are properly rewarded with more money in their pockets, businesses thrive and our entire economy benefits.

“To ensure the right balance is struck between the needs of workers, business affordability, and the wider economy, the LPC is being asked to consult on several issues before recommending the new rates.”

Source: GOV.UK

(Quotes via original reporting)