Authorities aim to abolish age-based discrimination in wage structures and establish fair compensation practices
Government Sets Sights on Single Adult Wage Rate with New LPC Remit
The Low Pay Commission (LPC) has received a new remit from the Government, focusing on the removal of discriminatory age bands and the eventual creation of a single adult wage rate. This update reflects the government's commitment to fair wages and addressing age-based disparities within the statutory minimum wage framework.
Deputy Prime Minister Angela Rayner emphasized the Government's determination to make low pay a thing of the past and deliver a wage people can live on. The new remit is the next milestone in their plan to raise living standards and boost the economy.
Under the new remit, the LPC will ensure that the cost of living is actively considered in its recommendations for National Living Wage rates from April 2026. This approach, introduced last year, benefited around 3 million workers, leading to a record cash increase in the Minimum Wage for apprentices and those under 18, and a £1,400 annual boost for full-time workers on the National Living Wage from April.
The LPC conducts extensive consultation, analysis, and evidence gathering when recommending minimum wage rates. In 2024, the Commission received evidence and stakeholder views from over 100 organizations. The Commission has been gathering first-hand evidence from workers and employers to inform its recommendations on the minimum wage.
The aim is to create a single wage rate for all adults, advancing equity across age-related pay bands. The LPC has been tasked with reviewing the youth rates, particularly the wage band for 18–20-year-olds, with the goal of narrowing the gap between this band and the National Living Wage rate currently paid to those aged 21 and over. The Commission will make recommendations on progressing to a single adult rate in the future.
Business Secretary Jonathan Reynolds stated that low pay hurts businesses and local economies, and the Government's Plan for Change aims to put more money in people's pockets and ensure a fair deal for the lowest-paid workers. The TUC General Secretary, Paul Nowak, supports the Government's ambition to raise the minimum wage and end outdated youth rates, stating that it is beneficial for both workers and businesses.
The LPC will consult with employers, trade unions, and workers on narrowing the gap between the 18-20-year-old rate of the National Minimum Wage and the National Living Wage. The recommendations for the 2026 National Minimum and Living Wage rates are due by October 2025, with an updated forecast NLW estimated around £12.71 per hour by April 2026.
The Chancellor of the Exchequer, Rachel Reeves, has reiterated the Government's commitment to ensuring fair wages for all workers. The LPC has a social partnership structure, with nine Commissioners equally representing employers, workers, and independents.
This update to the LPC remit is aimed at driving forward the Government's commitment to eliminating discriminatory age bands and establishing a single adult pay band. The Government sets the minimum wage rates each year based on the LPC's recommendations. The updated LPC remit is part of the government's manifesto pledge and includes putting the cost of living at the heart of the wage-setting process to benefit millions of low-paid workers.
- As the Low Pay Commission (LPC) works towards a single adult wage rate, this shift in business and finance is anticipated to have notable implications in the politics of wage disparity in general-news discourse.
- The new remit for the Low Pay Commission, aiming to create a single adult wage rate, is part of a broader economic and political strategy focused on fair pay and improving living standards for low-income workers.
