Labour has drawn up plans to put hundreds of pounds into the pockets of the lowest-paid by instructing the Low Pay Commission to factor in living costs when it sets the minimum wage.
They also want to scrap the lower pay categories for workers aged between 18 and 22, so that everyone would be paid at the higher rate.
The minimum wage is set at £9.50 an hour for those aged 23 and above, £9.18 for 21- and 22-year-olds, and £6.83 for workers between the ages of 18 and 20.
The proposal to help tackle the cost of living crisis comes after the party announced a £29bn plan to freeze the energy price cap this autumn.
With inflation soaring to a 40-year high of 10.1% – heaping more pain on households as the cost of food, energy and fuel increase – pressure will grow on the government to follow suit.
In a joint article for the Guardian, the deputy Labour leader, Angela Rayner, and the shadow chancellor, Rachel Reeves, write: “Poverty pay doesn’t just cause financial misery; it undermines many of the things that matter in life. Being compelled to accept every bit of overtime or take an extra part-time job to pay the bills comes at a cost to relationships and mental health.
“That’s not sustainable and it’s not the standard of living we should tolerate in Britain.”
The Low Pay Commission’s remit currently requires it to consider the link to average wages as well as wider economic conditions when it decides how much workers should be paid.
But under a Labour government, the body would also be asked to set the minimum wage at a level that covers the cost of living. This would apply to all workers aged 18 and over, including those who are now on a lower rate.
Reeves and Rayner say: “Young adult workers are still getting a raw deal on pay. Their
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