“The Government has rightly recognised that higher wages are the route to stronger growth and rising living standards."
The Trades Union Congress (TUC) has said that higher wages are the route to deliver stronger growth and improve living standards. The TUC’s general secretary Paul Nowak has said this in response to the announcement of the Low Pay Commission’s remit for 2026.
The government has set out in the Low Pay Commission’s remit that it believes that the minimum wage’s benchmark should remain at two-thirds of median hourly earnings and that it remains committed to aligning the minimum wage for 18-20 year olds with those over the age of 21.
Responding to the Low Pay Commission remit, Nowak said: “The Government has rightly recognised that higher wages are the route to stronger growth and rising living standards.
“It is essential that the National Minimum Wage does not fall below the reference point of two-thirds of median hourly earnings set by the Government.”
Nowak went on to add: “Abolishing discriminatory youth rates was a key plank of Labour’s manifesto and it is welcome the Government re-iterated its commitment today. Youth rates are not only unfair, but they’re also increasingly obsolete as most businesses hardly use them.
“Evidence has shown time and again that the minimum wage can be raised without negative impacts on employment. Youth unemployment is a serious issue that deserves real solutions, like stronger employment rights, an ambitious jobs guarantee and quality apprenticeships – not doomsday scaremongering and misleading claims about the minimum wage.
“The Low Pay Commission are the trusted experts and should be trusted to finish the job, setting out a plan to abolish the minimum wage youth rates this Parliament.”
The Low Pay Commission is responsible for advising the government on what the rates of the minimum wage should be.
Chris Jarvis is head of strategy and development at Left Foot Forward
Chris Jarvis is head of strategy and development at Left Foot Forward
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