Labour sets out plan to change minimum wage so it reflects cost of living

Angela Rayner says workers should not receive a ‘fake living wage they can’t live on’

Labour has put forward plans that could bump up low-paid workers’ wages by hundreds of pounds (AFP via Getty)

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 so that all over-18s would be entitled to the same living wage.

The proposals come as Britons face a cost of living crisis driven by soaring energy bills alongside 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”.