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Low Pay Commission Remit

30 July 2024

Proposing MP
Jonathan Reynolds Lab Co-op
Stalybridge and Hyde
Type
Written Ministerial Statement
Department
Department for Business and Trade
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TAGS
Economy Employment

At a Glance

Issue Summary

The statement addresses updates to the remit given to the Low Pay Commission to include consideration of the cost of living for the first time.

Action Requested

The Government has updated the LPC's remit to formally consider the cost of living and has committed to removing discriminatory age bands, aiming for a single adult rate by April 2025. The new remit also requests continued research on the impacts of minimum wage rates on low-paid workers with protected characteristics.

Key Facts

  • The Government sets minimum wage rates each October for application in April.
  • The updated remit asks LPC to consider the cost of living, business impact, and inclusive growth.
  • The new remit aims to remove discriminatory age bands by recommending a National Minimum Wage rate for 18–20-year-olds from April 2025.
  • The LPC is requested to report back by October 2024 with recommendations effective in April 2025.
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