Low Pay Commission | Could starting National Living Wage at 18 be a boon to business, or a net negative?

The Low Pay Commission (LPC) has recommended that the national living wage (NLW) should be paid to all over-18s instead of starting at 21.

This move, if implemented, would mark a departure from the current system where young adults between the ages of 18 and 20 are paid a lower minimum wage rate.

The LPC, an independent body responsible for advising the government on the minimum wage, argues that the gap between the wages of 18-20-year-olds and older adults has widened to an unfair level, currently standing at almost £3 an hour.

By scrapping the age distinction and extending the NLW to all over-18s, the LPC aims to address this disparity and provide a significant pay rise to hundreds of thousands of workers.
However, the proposal has sparked a heated debate, particularly among business groups, who warn that it could impose substantial financial burdens on employers.