The Government’s manifesto commitment to deliver a genuine living wage for working people took a step closer as it set out new considerations for the Low Pay Commission (LPC) when recommending next year’s National Living Wage and National Minimum Wage.
Around 3 million workers benefitted from last year’s decision to include the cost of living in the LPC’s remit for the first time. This 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, News Cover reports, citing UK government.
Higher wages for the lowest-paid workers not only provide greater financial security for families but also 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 will 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.
The remit will also 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.
