4 days ago
Thousands of people in one age group could get pay rise under new plans
Thousands of people in one age group could get pay rise under new plans
The Government have set out plans to increase the pay of young workers across the UK
Thousands of workers are in Wales could receive a pay rise under new plans announced by the UK Government. The Government has said it is pushing forward with its plants to remove "discriminatory" age bands for the national minimum wage by extending the remit of the Low Pay Commission (LPC).
The advisory body will consult with employers, trade unions and workers on narrowing the gap between the minimum wage rate for 18 to 20-year-olds, and the so-called national living wage - the UK minimum wage for workers 21 years and older.
The Labour Government has previously committed to remove these age bands which "hold back" younger workers to create a "genuine" national living wage, as part of efforts to bolster employment rights.
Currently, the national living wage for workers aged 21 and older is £12.21, while the minimum wage for workers aged between 18 and 20 is £10.
There is also a minimum wage for those aged under 18, and apprentices, of £7.55. For our free daily briefing on the biggest issues facing the nation, sign up to the Wales Matters newsletter here
Chancellor Rachel Reeves said: "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."
The change to the LPC remit will also ensure it actively considers the cost of living in its recommendations for changes to the minimum wage which are next applied from April 2026.
The Government said that around three million workers benefitted from last year's decision to include the cost of living in the LPC's remit for the first time, which led to a £1,400 annual boost for full-time workers on the national living wage from April.
The LPC, which was founded in 1997, provides recommendations to the Government each October regarding how it believes the minimum wage should be changed.
The Government ultimately sets minimum wage rates for the following April after this advice.
Deputy Prime Minister Angela Rayner said: "Having started my working life on low pay I know the difference a good, fair wage can make, and delivering this is a non-negotiable priority for this government as set out in our manifesto. This is a government on the side of Welsh workers. Our landmark plan to Make Work Pay has already delivered one of the biggest pay boosts on record – and up to 160,000 people in Wales have seen the benefit.
"With this remit we are backing the lowest paid Welsh workers, getting more money in working people's pockets, and raising living standards in every part of the UK as part of our Plan for Change."
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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.'
