Government commits to genuine living wage

The government has overhauled the remit of the Low Pay Commission (LPC) to factor in the cost of living when recommending minimum wage rates.

The LPC has also been instructed to narrow the gap between the minimum wage rate for 18–20-year-olds and the National Living Wage. This will be the first step towards achieving a single adult rate.

Chancellor Rachel Reeves said: “The new LPC remit is an important first step in getting people into work and keeping people in work, essential for growing our economy, rebuilding Britain and making everyone better off.

“The advent of the minimum wage has been one of the most effective and successful policy interventions of the last 25 years, and this announcement is the next step in achieving the promise of a genuine living wage for working people.”