Government ministers are poised to unveil a significant overhaul of the UK’s minimum wage structure. In a groundbreaking move, officials will now consider the cost of living when setting the legal minimum salary employers can offer their staff, and aim to narrow the pay disparity between younger and older workers.
This development emerges as a fresh survey reveals that an overwhelming majority of voters, seven out of 10, believe the lower wage bracket for those aged 18-20 should be abolished.
While the Low Pay Commission (LPC) is tasked with advising ministers on appropriate rates, until now, there has been no obligation for these recommendations to reflect whether wages meet basic living costs, reports the Liverpool Echo.
Business Secretary Jonathan Reynolds has directed the LPC to factor in living expenses in their future proposals. Speaking to the Mirror, he declared: “For too long working people have faced the worst of the cost of living crisis, but this Government is taking bold action to address it and make work pay.”
He further emphasised the government’s commitment, stating: “The new remit to the LPC is the first of many vital steps we will take to support more people to stay in work and improve living standards. Our focus remains on putting more money in working people’s pockets and boosting economic growth.”
Deputy Prime Minister Angela Rayner has declared: “For too many putting in a serious shift, work isn’t paying enough to cover the basics. That is why we are moving quickly to restore security and dignity to all the people putting in the hard graft to build this country from the ground up – giving hope to those striving to make life better for themselves and their families.”
She further emphasised the government’s commitment by stating: “Our new deal will protect working adults with a genuine living wage, creating a stronger, fairer and more aspirational future for work in Britain.”
In addition, Mr Reynolds is set to direct the Low Pay Commission (LPC) to reduce the disparity between the minimum wage for 1820 year olds and the National Living Wage, marking a “first step” towards abolishing the lower pay rate for younger workers.
A staggering 71 percent of voters are in favour of eliminating the “discriminatory” age bands of the minimum wage, which result in younger workers earning less than their older counterparts for the same job.
According to a Trades Union Congress (TUC) survey, there is widespread cross-party support for the proposal that all workers aged 18 and over should receive the same minimum wage, with an overwhelming majority of Labour (82 percent), Conservative (64 percent), Lib Dem (76 percent), Green (88 percent) and Reform (69 percent) voters endorsing the reform.
TUC General Secretary Paul Nowak has spoken out, asserting: “Everyone should be paid a fair rate for their job. But hundreds of thousands of young workers are suffering a huge pay penalty because of an outdated and discriminatory system. Young people up and down the country face the same cost of living pressures as everybody else. They shouldn’t be getting less for doing the same work as older workers.”
