Major change to UK minimum wage in Labour cost of living shake-up
manchestereveningnews.co.ukMinisters are poised to reform the way the Minimum Wage is set, ensuring it keeps pace with rising living costs. In an unprecedented decision, authorities will be obliged to consider the cost of living when proposing a new minimum wage level.
Simultaneously, the difference between the Minimum Wage for younger and older workers is set to decrease. The reform comes in response to a recent survey finding that 70% of respondents believe the lower wage rate for 18-20 year olds should be abolished altogether.
At present, the Low Pay Commission (LPC) advises ministers on rates; however, their recommendations do not currently need to account for ensuring low-paid workers can meet basic living expenses. READ MORE: Andy Burnham says people 'rushed to judgement' on Greater Manchester Police incident at Manchester Airport as new footage emerges Business Secretary Jonathan Reynolds has now directed the independent body to include cost of living factors in their future recommendations.
Speaking to The Mirror, he 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." He added that: "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.", reports the Mirror.
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