Government moves to end age-based pay bands

The government is taking steps to end the use of lower minimum wage rates based solely on age.

At the moment, people aged 18 to 20 are paid less than those aged 21 and over, even when doing the same job. 

But now, the government has asked the Low Pay Commission (LPC) to look at how to phase them out.

This is part of a wider plan to create a single adult pay band for all workers, regardless of age.

The LPC will consult with workers, employers and trade unions to make recommendations on narrowing and eventually removing the gap.

What are the current pay rates?

The national living wage for those aged 21 and over is now £12.21 an hour.

But the national minimum wage for 18 to 20-year-olds is £10 an hour.

Meanwhile, the rate for 16 and 17-year-olds and apprentices is £7.55 an hour.

“We promised to make low pay a thing of the past and deliver a wage people can live on,” said deputy prime minister Angela Rayner.

“That is exactly what this government is determined to deliver.”

Chancellor Rachel Reeves added: “When working people are properly rewarded with more money in their pockets, businesses thrive and our entire economy benefits.”

What are my options if I’m in work and struggling?

If you’re in work and still finding it hard to make ends meet, there are practical steps you can take.

Use the government's minimum wage calculator to find out if you're being paid the correct national minimum wage or national living wage. 

And if you think you’ve been underpaid, check out our handy guide outlining what you can do.

It’s also well worth making sure you’re on top of how much money is coming in and going out by using our budget planner.

Meanwhile, make sure you’re getting all the help you qualify for with our free benefits calculator.

Finally, if you’re finding it hard to manage your debts, then find out how we can help.