Возрастные диапазоны минимальной заработной платы будут сокращены в результате правительственной встряски

The Government has said it is pushing forward with plans to remove ‘discriminatory’ age bands for the national minimum wage (Alamy/PA) PA Media

The Government has announced plans to eliminate "discriminatory" age bands for the national minimum wage, extending the remit of the Low Pay Commission (LPC) to consult on creating a single adult rate. The move represents a significant step towards Labour's commitment to establish a "genuine" national living wage for all workers.

The advisory body will now consult with employers, trade unions and workers on narrowing the gap between the minimum wage rate for 18 to 20-year-olds and the national living wage for workers aged 21 and older. The LPC must also put forward recommendations on achieving a single adult rate in the coming years.

Chancellor outlines consultation approach

Chancellor Rachel Reeves said the LPC is being asked to consult on several issues before recommending new rates to ensure the right balance between worker needs, business affordability and the wider economy. The change forms part of Labour's broader efforts to strengthen employment rights across the UK.

Currently, workers face significant pay disparities based solely on age. The national living wage for workers aged 21 and older stands at £12.21 per hour, whilst those aged between 18 and 20 receive just £10 per hour.

Existing wage structure under review

Workers under 18 and apprentices receive even less at £7.55 per hour, creating a three-tier system that the Government considers unfair. The new remit will also require the LPC to actively consider the cost of living when making recommendations for minimum wage changes from April 2026.

The LPC, established in 1997, provides annual recommendations to the Government each October on minimum wage adjustments. The Government then sets the actual rates for the following April based on this advice.

Business leaders welcome fair pay plans

Business Secretary Jonathan Reynolds said low pay drags down living standards for workers and hurts high streets and local businesses. He described the Government's plan for change as putting money back in people's pockets whilst maintaining a competitive economy that benefits both businesses and employees.

Baroness Philippa Stroud, chairwoman of the LPC, welcomed receiving the new remit from the Government. She said the commission has already spent significant time this year speaking with workers and employers to understand economic pressures and the effects of recent minimum wage increases.

The LPC has conducted a successful call for evidence and received detailed submissions from all sides of the debate. The consultation process will inform recommendations that could fundamentally reshape how Britain pays its youngest workers.

(PA/London) Note: This article has been edited with the help of Artificial Intelligence.