Government commitment to higher wages hailed as policy win on age discrimination by CAP
Christians Against Poverty has today welcomed the Government’s newly published remit for the Low Pay Commission (LPC), which sets out the direction for the National Minimum and Living Wage rates from April 2026.
CAP has recognised the Government’s stated ambition to raise living standards and has particularly marked its commitment to remove discriminatory age bands for adults, a move it has long campaigned for.
The new remit asks the LPC to ensure the National Living Wage (NLW) does not fall below two-thirds of median earnings and to take the cost of living and inflation into account. It also tasks the LPC with exploring what criteria would be needed to increase the NLW target further.
The Government’s central estimate is that an NLW increase to £12.71 (4.1%) would ensure the NLW does not fall below two-thirds of median earnings. However, predicting this figure is challenging, so they project a range around their central estimate which runs from £12.55 to £12.86.
The commitment to removing discriminatory age bands for adults is a major policy win for CAP and something we have repeatedly called for, including in our direct submissions to the Low Pay Commission.
Stewart McCulloch, Chief Executive Officer, CAP
Stewart McCulloch, CEO of Christians Against Poverty, commented on the announcement:
“We are glad to hear the Government state its determination to deliver a genuine living wage and are encouraged by its commitment to raising the living standards of working people. For the thousands of low-income families we support every year, a fair wage is the most effective and dignified route out of poverty.
“The commitment to removing discriminatory age bands for adults is a major policy win for CAP and something we have repeatedly called for, including in our direct submissions to the Low Pay Commission. It is a vital step towards fairness, ensuring that adult workers are paid based on their job, not their age. We also view the instruction for apprentice and under-18 rates to be set as high as possible as a positive development.”
While welcoming the overall direction, CAP notes that the details of the policy will require careful scrutiny to ensure they deliver real-world benefits for those struggling with low pay.
McCulloch continued: “While the positive recognition of cost of living pressures is a step forward, we will need to carefully analyse the immediate and long-term impacts of pegging the NLW to two-thirds of median earnings to ensure it genuinely protects households from rising costs.
“We have a strong, collaborative relationship with the Low Pay Commission, having recently facilitated a visit for their policy team to one of our Job Clubs. We are therefore well-placed and eager to feed into the crucial conversation about what criteria are needed to ensure everyone receives a liveable income. We look forward to working with both the Government and the LPC to help build a society where adequate income can help in the journey towards an end to UK poverty.”
Read CAP’s response to the Low Pay Commission.
