The Business Secretary, Jonathan Reynolds, has instructed the LPC to pay heed to the cost of living (Image: Getty) Ministers in the new Labour government are set to announce a major shake-up to ensure the minimum wage keeps up with the cost of living . The gap between the Minimum Wage for younger and older workers is also expected to be reduced, according to The Mirror . Currently, the Low Pay Commission (LPC) makes recommendations to ministers on the rate, but does not base their recommendations on low paid workers’ ability to make ends meet.
The shake-up comes as a new poll has found that seven in 10 voters believe the lower rate for 18-20-year-olds should be scrapped altogether, which sees younger workers paid less than older colleagues for doing the same work. function loadOvpScript(){let el=document.createElement('script');el.
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Log('[Load] OVP tcfLoaded',new Date())})}},1500)}) READ MORE: Living wage boost as King's Speech claims 'cost of living' will help set pay Currently the LPC does not need to consider low paid workers' ability to make ends meet (Image: Getty) The Business Secretary, Jonathan Reynolds , has instructed the independent body to pay heed to the cost of living when making their suggestions in the future. He told The Mirror, that the new government was “taking bold action” to address the crisis and will “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.” Deputy Prime Minister, Angela Rayner , also added that for too many, “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.
“Our new deal will protect working adults with a genuine living wage, creating a stronger, fairer and more aspirational future for work in Britain.” Don't miss..
. Everyone born in these years set for pay rise after law changes [LATEST] I was living in luxury as a stay-at-home fiancée – now I have two low-wage jobs [LATEST] 15 high paying jobs you don't need a degree for - and you could get £30 an hour [LATEST] Angela Rayner added that for too many "“work isn’t paying enough to cover the basics”. (Image: Getty) Trending SUBSCRIBE Invalid email We use your sign-up to provide content in ways you've consented to and to improve our understanding of you.
This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. Read our Privacy Policy Reynolds also described the narrowing of the gap between the rate for 18-20-year-olds and the National Living Wage as a “first step” towards removing the lower rate.
Reynolds and Rayner are expected to write to the Chair of the LPC and the full remit will be published on Tuesday July 30. A poll for the Trade Union Congress (TUC) showed spectrum-wide support for younger workers being paid the same wage rate: 82 percent of Labour, 64 percent of Conservative , 76 percent of Lib Dem, 88 percent of Green and 69 percent of Reform. “Everyone should be paid a fair rate for their job,” TUC General Secretary Paul Nowak said.
“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.” Related articles Labour issued dire warning as holiday lets spread 'forcing people out of homes' We need to put police back on our streets, says Yvette Cooper Robert Jenrick has got credibility on immigration, says Mark Spencer Labour's new economic agenda will kill growth and stifle investment Rachel Reeves plotting tax 'bombshell' as Labour warned hikes will 'kill growth'.
