Government moves to scrap discriminatory wage bands and boost pay for millions

New remit for Low Pay Commission signals bold step toward single living wage for adults

The Government has today (5 August) taken a significant stride toward delivering a genuine living wage by issuing a new remit to the Low Pay Commission (LPC), aimed at phasing out discriminatory age-based wage bands and ensuring fairer pay for all adult workers.

Under the revised directive, the LPC will be tasked with narrowing the gap between the National Minimum Wage (NMW) for 18–20-year-olds and the National Living Wage (NLW), progressing towards a single adult pay rate for workers across the UK.

The move builds on last year’s reforms, which introduced the cost of living into LPC considerations for the first time—resulting in the largest cash increase on record for apprentices and under-18s, and a £1,400 annual uplift for full-time workers on the NLW.

Approximately three million workers saw their pay rise following those changes. Now, with the cost of living remaining central to the LPC’s remit for its 2026 recommendations, the Government aims to further strengthen financial security for Britain’s lowest-paid.

“Fair deal for our lowest paid workers”

Business Secretary Jonathan Reynolds commented:

“Low pay drags down living standards for our workers and in turn hurts our high streets and local businesses.

“This Government’s Plan for Change will put money back in people’s pockets, with this new remit marking the next step in considering how we ensure a fair deal for our lowest paid workers while maintaining a competitive economy that boosts businesses and their employees alike.”

The move is also intended to stimulate local economies, with higher disposable incomes leading to increased consumer spending—a vital component of the Government’s wider Plan for Change.

Deputy Prime Minister Angela Rayner stated:

“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.

“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.”

Strong support from trade unions

TUC General Secretary Paul Nowak welcomed the decision, saying:

“Boosting the minimum wage isn’t just good for workers – it’s good for business too. When low-paid workers have more money in their pockets, they spend it locally – supporting shops, cafés and high streets.

“That’s why the government is right to set out its ambition to raise the floor of the minimum wage and end the outdated and unfair youth rates.”

He also noted:

“A bolder, more ambitious minimum wage isn’t a risk. It’s the next step in building a fairer, stronger economy where hard work is properly rewarded.”

Consultation and evidence-based policy

Baroness Philippa Stroud, Chair of the LPC, confirmed the Commission’s commitment to careful and inclusive consultation:

“More than ever, it is important that we draw on first-hand evidence from those affected by our decisions. I look forward to working with the rest of the Commission over the autumn to reach a shared view on this evidence and deliver our advice to the Government in October.”

The LPC, an independent body composed of representatives from employer groups, worker organisations and neutral commissioners, will now launch a period of consultation and analysis before delivering its recommendations for wage levels applicable from April 2026.

What’s next?

While minimum wage rates are reviewed annually, today’s announcement signals a broader transformation in how wage policy will be shaped—prioritising economic fairness, wage equality and the cost of living.

The LPC’s recommendations are expected to be submitted this October, in line with its usual schedule.