A Labour government will change the remit of the Low Pay Commission so that the minimum wage will for the first time reflect the need for working people’s pay to at least cover the cost of living.
Unveiling the commitment in a joint article in The Gaurdian, Labour Deputy Leader and Shadow Secretary of State for the Future of Work Angela Rayner and Shadow Chancellor Rachel Reeves pledged Labour would “make work pay again”.
Under the plan Labour would keep a link to median earnings, so that all workers benefit from growth – and ensure this genuine National Living Wage applied to every adult worker.
From April 2016 the government introduced a higher minimum wage rate for all staff over 25 – calling it the ‘National Living Wage’. However, this wage is not calculated according to what employees and their families need to live. Instead, it is based on a target to reach 66% of median earnings by 2024.
Under current forecasts this means a rise to £10.50 per hour by 2024 and from 2021 was adjusted to include those over 23 years old. As of April 2022, the National Living Wage is £9.50 for all over 23s, while the National Minimum Wage is £9.18 for those aged 21-22 and just £6.83 for those aged 18-20.
Labour government in power will change the Low Pay Commission’s (LPC) remit so that – alongside median wages and economic conditions – the minimum wage will for the first time reflect the need for working people’s pay to at least cover the cost of living.
Karl Turner said:
“When working people’s pay is squeezed, that removes spending power from the economy.
Working people contribute so much to the wealth of our country. It is only right that they receive a fair day’s pay for a fair day’s work not a bogus living wage they can’t live on.
Labour will make work pay again with a new settlement for the future of work. We will ensure our genuine National Living Wage is paid to every adult worker.
While the Conservatives look to eradicate what limited rights people already have, the next Labour government will guarantee a real living wage for all, while strengthening individual and collective rights for working people.
Our economy will be not just high-growth but high-wage. Working people across our country deserve good jobs and fair pay, and only a Labour government will provide it.