Marvin OnumonuClaire Cole (pictured), senior solicitor in Harper James’ employment team, said the move to remove age bands for the minimum and living wage from 2026 will mean a significant change for employers.
This comes after the Government set out plans to end age-based minimum wage bands by 2026 and introduce a single pay rate for all adults.
Cole said: “Businesses with a younger workforce, particularly in sectors such as retail, hospitality, and care, will need to start thinking now about how to adjust their pay structures, manage rising costs, and plan for the long term.
“The estimated rise in the National Living Wage to £12.71 an hour adds another layer of pressure.
“While many employers already pay above the minimum, this increase, alongside the move to a single adult rate, will have a real impact on payroll.”
Cole added: “It’s not just about headline wages either; businesses will also need to think about how this affects internal pay gaps and team morale.
“It’s helpful that the Government has asked the Low Pay Commission to balance the need for fair pay with affordability.
“Employers are already dealing with rising costs, skills shortages and a tough economic climate – so any wage changes need to be workable in practice, not just on paper.”
She said: “There could also be knock-on effects for recruitment and training.
“If entry-level roles become more expensive, some businesses might need to rethink how they structure apprenticeships, internships or early-career roles.
“That’s why employer input into the Low Pay Commission’s consultation is so important.”
She added: “Sharing real-life examples of how these changes might play out will help shape a more balanced, sustainable approach to wage policy – one that supports fair pay while also allowing businesses to thrive.”
