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Low-paid workers could earn hundreds of pounds more a year under Labour plans for the minimum wage to factor in the cost of living.
The opposition party said it wanted to scrap lower rates for young adults and instead have all over-18s entitled to the same living wage.
The proposals come as Britons face a cost of living crisis driven by soaring energy bills and rocketing inflation, which is now at 10 per cent. Meanwhile, wages are failing to keep up with the pace of increase.
Angela Rayner, Labour’s deputy leader, said her party would create a “genuine” national living wage for workers rather than a “fake living wage they can’t live on”.
The minimum wage rose from £8.91 to £9.50 an hour this April for Britons aged 23 and over – a 6.6 per cent increase.
Younger adults get lower rates, with £9.18 an hour for 21 and 22-year-olds and £6.83 for other over-18s.
Labour said if it formed a government, it would instruct the advisory Low Pay Commission to set a minimum wage that covers the cost of living.
It did not say exactly how much its plans would raise wages by, instead saying it would leave that to the commission that advises the government.
Angela Rayner says workers do not deserve ‘a fake living wage’ (Yui Mok/PA)
(PA Wire)
The Living Wage Foundation makes its own calculations based on an everyday basket of goods and urges employers to pay people outside London £9.90.
That would give an over-23 working an average 36-hour week an annual pay rise of around £770.
“Working people contribute so much to the wealth of our country and it is only right they receive a fair day’s pay for a fair day’s work, not a fake living wage they can’t live on,” Ms Rayner said.
Rachel Reeves, the shadow chancellor, said: “Many employers already pay a real living wage and that is to be commended. But they should not be undercut by those who don’t, which is why we need a level playing field.”
Real wages fell at a record rate between April and June this year, according to official figures released this week.
Additional reporting by Press Association
