Government aims to end age discrimination

The recent announcement by the Government marks a turning point in its commitment to achieving a genuine living wage for all working people. On 5 August 2025, the Department for Business and Trade set out new considerations for the Low Pay Commission (LPC), aiming to remove discriminatory age bands and work towards a single wage rate for adults. This initiative is part of the broader Plan for Change, which places the cost of living at its core, promising to put more money into the pockets of hardworking individuals.

Last year, around 3 million workers benefited as the LPC began including the cost of living in its remit, which resulted in a record cash increase in wage rates. The updated remit aims to narrow the pay gap between the National Minimum Wage for younger workers aged 18 to 20 and the National Living Wage, with plans to achieve a unified adult pay rate in the coming years.

Business Secretary Jonathan Reynolds remarked that "low pay drags down living standards for our workers and in turn hurts our high streets and local businesses." He emphasised that the new remit is pivotal for offering a fair deal to the country's lowest-paid workers while ensuring that businesses remain competitive and thrive.

Deputy Prime Minister Angela Rayner reinforced this sentiment, stating, "We promised to make low pay a thing of the past, and deliver a wage people can live on." She articulated that the government's ongoing efforts are designed to boost living standards across the nation, ultimately fostering economic growth.

Chancellor of the Exchequer Rachel Reeves also weighed in, declaring, "We are delivering on our promise to make sure every worker receives a fair wage." Her announcement highlighted the connection between fair pay and thriving businesses, underscoring that rewarding workers adequately leads to broader economic benefits.

Baroness Philippa Stroud, Chair of the LPC, expressed appreciation for receiving the government mandate and confirmed that extensive consultations with workers and employers are already underway. "Our recommendations on the minimum wage are always finely balanced," she noted, reinforcing the importance of drawing from first-hand evidence to inform their decisions.

The TUC General Secretary Paul Nowak remarked, "Boosting the minimum wage isn’t just good for workers - it’s good for business too." He asserted that a fair minimum wage helps invigorate local economies by enabling low-paid workers to spend more in their communities. He believes that raising the minimum wage is not merely a risk but a crucial step towards constructing a fairer and stronger economy.

In summary, the Government is shifting towards a more equitable pay structure, addressing age discrimination in wages and ensuring the minimum wage keeps pace with the cost of living to benefit all workers across the UK