Rochdale MP, Tony Lloyd, is backing Labour’s plans to change the remit of the Low Pay Commission so that the minimum wage will, for the first time, reflect the need for working people’s pay to at least cover the cost of living.

Tony said, “There are employers in Rochdale who already pay a real living wage and they are to be commended. But they shouldn’t be undercut by those who don’t.

“We need a level playing field. It’s only right that people receive a fair day’s pay for a fair day’s work instead of a wage that they cannot live on.

“The Tories seem hellbent on eradicating what limited rights people have, but Labour in government will make work pay again and will ensure that our genuine National Living Wage is paid to every adult worker.

“Everyone deserves good jobs and fair pay, and only Labour will provide that.”

Unveiling the commitment, Labour Deputy Leader and Shadow Secretary of State for the Future of Work Angela Rayner and Shadow Chancellor Rachel Reeves pledged Labour would “make work pay again”.

Under the plan Labour would keep a link to median earnings, so that all workers benefit from growth – and ensure this genuine National Living Wage applied to every adult worker.

From April 2016 the government introduced a higher minimum wage rate for all staff over 25 – calling it the ‘National Living Wage’. However, this wage is not calculated according to what employees and their families need to live. Instead, it is based on a target to reach 66% of median earnings by 2024. 

Under current forecasts this means a rise to £10.50 per hour by 2024 and from 2021 was adjusted to include those over 23 years old. As of April 2022, the National Living Wage is £9.50 for all over 23s, while the National Minimum Wage is £9.18 for those aged 21-22 and just £6.83 for those aged 18-20.

Labour government in power will change the Low Pay Commission’s (LPC) remit so that – alongside median wages and economic conditions – the minimum wage will for the first time reflect the need for working people’s pay to at least cover the cost of living.

—Ends—

Notes for editors:-

•    A Labour government created the National Minimum Wage, which took effect on 1 April 1999. From April 2016 the government introduced a higher minimum wage rate for all staff over 25 – calling it the ‘National Living Wage’. 

•    The Low Pay Commission (LPC) is an independent public body that advises the Government each year on the NMW and NLW. The LPC is a social partnership body, made up of nine Commissioners: three from employer backgrounds, three from worker representative backgrounds, and three independent Commissioners, including the Chair. Every year since its first report in 1998, Commissioners have unanimously agreed the LPC’s recommendations to the Government.

•    That next Labour government will change the LPC’s remit so that – alongside median wages and economic conditions – the minimum wage will for the first time reflect the need for working people’s pay to at least cover the cost of living. Labour will ensure this genuine National Living Wage applied to every adult worker aged over 18 – and is properly enforced.