Government ministers are set to announce a major change to the minimum wage in the UK. Officials will factor in the cost of living when calculating the lowest amount employees can legally pay workers, with the gap between minimum wage for younger and older workers reduced.

The plan 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.

Business Secretary Jonathan Reynolds has instructed the independent body to take the cost of living into account when making their suggestions in future. He told the Mirror: “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 18–20-year-olds and the National Living Wage as a “first step” towards removing the lower rate for younger staff.

Some 71% of voters backed scrapping the “discriminatory” age bands of the minimum wage, that see younger workers paid less than older colleagues for doing the same work. A poll for the Trades Union Congress (TUC) showed support across the political spectrum for all workers aged 18 and over being paid the same minimum wage rate, with a large majority of 2024 Labour (82%), Conservative (64%), Lib Dem (76%), Green (88%) and Reform (69%) voters all backing the change.

TUC General Secretary Paul Nowak said: “Everyone should be paid a fair rate for their job. 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.” (Liverpool Echo)

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