Minimum Wage is set to change for people on low income to ensure their pay keeps up with the cost of living.
Officials will have to take cost of living into account when calculating the suggested level of the minimum wage. And the gap between the Minimum Wage for younger and older workers will be reduced.
It comes as a new poll found 7 in 10 voters think the lower rate for 18-20 should be scrapped altogether. The Low Pay Commission (LPC) makes recommendations to ministers on the rate - but they currently don’t have to base their recommendations on whether it would allow low paid workers to make ends meet.
- Read More: DWP issues fraud warning to Universal Credit and other benefit claimants who have a partner
Get all the latest money news and budgeting tips from Chronicle Live with our free newsletter
Now Business Secretary Jonathan Reynolds has instructed the independent body to factor in cost of living when making their suggestions in future, reports 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.
"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 added: “For too many putting in a serious shift, 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." Mr Reynolds will also instruct the LPC to narrow the gap between the minimum wage rate for 18 to 20-year-olds and the National Living Wage as a “first step” towards removing the lower rate for younger staff.
The Business Secretary and Deputy Prime Minister will write to the Chair of the Low Pay Commission and the full remit will be published on Tuesday, July 30.
Join our WhatsApp communities
ChronicleLive is now on WhatsApp and we want you to join our communities.
We have a number of communities to join, so you can choose which one you want to be part of and we'll send you the latest news direct to your phone. You could even join them all!
To join you need to have WhatsApp on your device. All you need to do is choose which community you want to join, click on the link and press 'join community'.
No one will be able to see who is signed up and no one can send messages except the ChronicleLive team.
We also treat our community members to special offers, promotions, and adverts from us and our partners.
If you don't like our community, you can check out any time you like. To leave our community click on the name at the top of your screen and choose 'exit group'.
If you’re curious, you can read our privacy notice.
Join the ChronicleLive Breaking News and Top Stories community
Join our Court & Crime community
Join the Things to do in Newcastle and the North East community
Join our Northumberland community
