The government has announced that it is changing how the minimum wage is determined, to better reflect the cost of living.
The Low Pay Commission will now consider this factor when setting the rates. In the announcement, they also set out their aims to reduce the wage gap between younger and older workers.
Sarah Yong, Director of Policy & Communications at Youth Futures Foundation, comments on the latest announcement:
“We welcome the Government announcement that the cost of living will now be factored into setting the National Living Wage and the move to ensure the rate for 18-20-year-olds will align upwards with the adult rate. This is long overdue with young people dealing with persistently high prices recently, and especially so for the most marginalised.
“While this announcement is positive for younger people in work, or close to it, we need more support for marginalised young people further away from the labour market to access opportunities.
“We also need to see the cost of living factored into the apprenticeship wage. International evidence tells us apprenticeships can be impactful in particular for marginalised young people getting into good work. It’s therefore essential to ensure apprenticeship pathways are attractive and rewarding for young people to access and not a ‘low pay’ entry route.”
