Millions of Brits to get pay rises under government plans to launch ‘genuine’ living wage

Millions of Brits could be in line to get a pay rise under government plans to launch a new living wage.

At present, there are various minimum wage rates for the different age groups. For example, 18-20-year-olds must earn a minimum of £8.60 an hour, while those over 21 must earn at least £11.44 per hour.

In potential new changes, however, the age factor could be eliminated and instead a new single 'genuine' living wage announced.

The move would impact millions of Brits, who could be in line for a pay rise if the plan goes ahead.

Millions of Brits could be in line to get a pay rise (Getty Stock Photo)

In a press release, Business and Trade Secretary Jonathan Reynolds said: "For too long working people have faced the worst of the cost-of-living crisis, but this Government is taking bold action to address it and make work pay.

"The new remit to the LPC is the first of many vital steps we will take to support more people to stay in work and improve living standards.

"Our focus remains on putting more money in working people's pockets and boosting economic growth."

The change could bridge the gap between the minimum wage for 18-20-year-olds and the living wage for over-21s in the UK. Essentially, it would create a new rate for all adults.

Chancellor Rachel Reeves said: "Economic growth is our first mission, and we will do everything we can to ensure good jobs for working people. But for too long, too many people are out of work or not earning enough.

"The new LPC remit is an important first step in getting people into work and keeping people in work, essential for growing our economy, rebuilding Britain and making everyone better off."

It could narrow the gap between the minimum wage and the living wage (Getty Stock Photo)

The Trades Union Congress has also spoken out on the potential change, calling it 'significant first steps' towards a 'real living wage'.

"These are significant first steps towards making the minimum wage a real living wage and will make a difference to millions," said TUC general secretary Paul Nowak.

"We welcome the government's decision to ask the Low Pay Commission to be more ambitious next year and into the future.

"We also support the government's commitment to ending discriminatory age bands for minimum wage workers.

"Young people face the same cost-of-living pressures as other adult workers and will welcome their pay being brought into line."

The proposed changes are said to be the 'first steps' in the government's mission to grow the economy and improve living standards.

It's important to note that the minimum wage for those under 18 will not be changing - so children aged 16 and 17 will still be on the same hourly minimum rate of £6.40.