[UK] Government overhaul of minimum wage structure

[UK] Government overhaul of minimum wage structure
13 Jan 2025

In the UK, government ministers will unveil a significant overhaul of the nation’s minimum wage structure, MSN reports.

The cost of living will now be considered when setting the legal minimum salary for workers, for the first time, narrowing the pay gap between younger and older employees. 

The policy shift reportedly comes in the wake of a recent survey which revealed that seven in 10 voters think the lower minimum wage band for those aged 18-20 should be scrapped altogether.

The Low Pay Commission (LPC) traditionally advises the government on wage levels, however, they do not currently consider whether it will enable low-paid workers to meet the cost of living. Business Secretary Jonathan Reynolds has now directed the LPC to integrate cost of living calculations into their future recommendations.

Speaking to the Mirror, Mr Reynolds said, "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.

"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."

Mr Reynolds reportedly plans to direct the LPC to begin closing the salary gap between 18-20 year olds and those receiving the National Living Wage, in a move to eliminate the lower wage rate for younger workers.

Backing Labour's position, a recent survey reportedly showed significant public support for an equal minimum wage, with around 71 per cent of voters in favour of abolishing the "discriminatory" age bands. 

Source: MSN

(Quotes via original reporting)

 

In the UK, government ministers will unveil a significant overhaul of the nation’s minimum wage structure, MSN reports.

The cost of living will now be considered when setting the legal minimum salary for workers, for the first time, narrowing the pay gap between younger and older employees. 

The policy shift reportedly comes in the wake of a recent survey which revealed that seven in 10 voters think the lower minimum wage band for those aged 18-20 should be scrapped altogether.

The Low Pay Commission (LPC) traditionally advises the government on wage levels, however, they do not currently consider whether it will enable low-paid workers to meet the cost of living. Business Secretary Jonathan Reynolds has now directed the LPC to integrate cost of living calculations into their future recommendations.

Speaking to the Mirror, Mr Reynolds said, "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.

"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."

Mr Reynolds reportedly plans to direct the LPC to begin closing the salary gap between 18-20 year olds and those receiving the National Living Wage, in a move to eliminate the lower wage rate for younger workers.

Backing Labour's position, a recent survey reportedly showed significant public support for an equal minimum wage, with around 71 per cent of voters in favour of abolishing the "discriminatory" age bands. 

Source: MSN

(Quotes via original reporting)

 

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