Changes planned for minimum wage in the UK
The government has set out new considerations for the Low Pay Commission (LPC) when recommending next year’s National Living Wage and National Minimum Wage.
The government said that it has placed the cost of living at the heart of the remit, a year on from its first inclusion, meaning more money is being put into the pockets of hardworking people.
This includes a proposal to scrap discriminatory age bands in favour of a single adult pay band.
“We promised to make low pay a thing of the past and deliver a wage people can live on, and that is exactly what this government is determined to deliver,” said Deputy Prime Minister Angela Rayner.
“We have already taken bold action to Make Work Pay with more than three million workers seeing a huge boost in their pay following our increase to the National Minimum and Living Wage,” she said.
“This remit is the next milestone in our plan to get more money in working people’s pockets, raise living standards in every part of the UK, and get our economy growing.”
How the LPC works
The Low Pay Commission (LPC) is a social partnership, made up of nine Commissioners equally split between those representing employers’ interests, those representing workers’ interests and independent Commissioners.
The Commission conducts extensive consultation, analysis and evidence gathering when recommending the minimum wage rates. They talk to a wide range of stakeholders, including both employers and worker representatives.
In 2024, the LPC received evidence and stakeholder views from over 100 organisations through written consultation, oral evidence sessions or visits across the UK.
The government then sets the minimum wage rates each year following the advice of the LPC. These recommendations are made by the LPC each October – for minimum wage rates to apply from the following April – in line with the parameters set out in the annual remit from the Department for Business and Trade.
