Millions of employees are set to receive an important increase in their wages under the Labour government. The party has rolled out plans to revamp the minimum wage, providing a major uplift for households all over the nation.
Labour to Implement Wage Reform to Benefit Workers of All Ages
Labour's wage boost plan is set to provide financial relief to millions of workers across the country, but the increase particularly targets younger workers.
Labour has revealed its intentions to eliminate the current minimum wage age bands for adults, and replacing them with more equitable wage policies.
Currently, young adults aged 21 and over get £11.44 per hour, while those aged 18 to 20 make £8.60 per hour, and those under 18 get £6.40 per hour, which equals an apprentice wage. According to the Express. Labour's manifesto pledges to achieve “a new deal for working people” in the initial 100 days after the election.
Although the government has not yet specified the implementation details across all three wage levels, the Labour Manifesto indicates that this move could lead to higher wages for 'hundreds of thousands of people'. Additional measures include banning fire and rehire practices, prohibiting zero hours contracts, and securing rights to parental leave and sick pay.
The manifesto includes: “Labour's Plan to Make Work Pay: Delivering a New Deal for Working People' in full introducing legislation within 100 days. We will consult fully with businesses, workers, and civil society on how to put our plans into practice before legislation is passed. This will include banning exploitative zero hours contracts; ending fire and rehire; and introducing basic rights from day one to parental leave, sick pay, and protection from unfair dismissal.”
“Labour will also make sure the minimum wage is a genuine living wage. We will change the remit of the independent Low Pay Commission so for the first time it accounts for the cost of living. Labour will also remove the discriminatory age bands, so all adults are entitled to the same minimum wage, delivering a pay rise to hundreds of thousands of workers across the UK.”
Labour's Plan to Reform National Minimum Wage, Remove Age Bands for Workers
The current over 21 rate is worth £1,654 a month. But this number is also expected to rise under Labour. That's because the party has promised to “turn the minimum wage into a real living wage that takes the cost of living into account”.
The National Living Wage typically sees an annual increase to account for inflation, ensuring that workers aren't falling behind in real terms.
It's initial Budget back in Government could potentially be scheduled for later this year. Ranjit Dhindsa, head of employment at law firm Fieldfisher clarified: “On pay, the national minimum wage is set for reform, with a proposal to remove the current age bands for adult workers.
“The national minimum wage has increased each year and it will be interesting to see how those sectors of the economy that are struggling will cope with the removal of different rates of pay.”
