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, Labour Deputy Leader
and Shadow Secretary of State for the Future of Work and Shadow Chancellor 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.
, MP for Washington and
Sunderland West, said:
"This is exactly the type of measure needed to strengthen
individual and collective rights for working people. A Labour
Government will guarantee a real living wage for all.
"Labour will tackle poverty pay and ensure that working
people are not just seen as collateral damage from an economy
that is not working. This policy will ensure that workers get the
good jobs and fair pay they deserve."
, Labour Deputy Leader and
Shadow Secretary of State for the Future of Work 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.”
, Shadow Chancellor said:
“Many employers already pay a real living wage and that is to be
commended. But they should not be undercut by those who don’t,
which is why we need a level playing field.
“That is why the next Labour government will change the Low Pay
Commission’s 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. Finally, the National Living Wage will live up to its
name.
“We will deliver higher growth than the Conservatives in
government and we will ensure more people experience the benefits
of it, built on the knowledge that wealth doesn’t just trickle
from the top down, but comes from the bottom up and the middle
out.”
ENDS
· A Labour government created the National Minimum Wage, which
took effect on 1 April 1999. From April 2016 the government
introduced a higher minimum wage rate for all staff over 25 –
calling it the ‘National Living Wage’.
· The Low Pay Commission (LPC) is an independent public body that
advises the Government each year on the NMW and NLW. The LPC is a
social partnership body, made up of nine Commissioners: three
from employer backgrounds, three from worker representative
backgrounds, and three independent Commissioners, including the
Chair. Every year since its first report in 1998, Commissioners
have unanimously agreed the LPC’s recommendations to the
Government.
· That next Labour government will change the LPC’s 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. Labour will
ensure this genuine National Living Wage applied to every adult
worker aged over 18 - and is properly enforced.
