Autumn Statement: Millions to get pay rise as living wage is hiked to more than £10 an hour, Hunt confirms
JEREMY Hunt confirmed a boost to the national living wage beginning next April.
The Chancellor revealed plans for a 10% hike, which will see the threshold rise from £9.50 to £10.42 an hour.
The move will mean a pay day for more than 2.5m Brits.
The national living wage is the minimum amount all employers have to pay staff aged 23 and over.
Those younger than 23 can be paid the national minimum wage instead, which is currently £9.18 for 21 – 22-year-olds and £6.83 for those aged 18 – 20.
These will rise to £10.18 and £7.49 an hour respectively from April too.
Read more about Jeremy Hunt's budget on the Autumn Statement live blog
The national living wage is different from the real living wage, which sits at £11.95 in London and £10.90 for the rest of the UK.
The real living wage is set by the charity Living Wage Foundation, and isn't compulsory for bosses to follow.
However, 11,000 UK businesses voluntarily pay it to staff members.
Mr Hunt gave more details about the living wage hike during his Autumn Statement.
In today's Autumn Statement, Jeremy Hunt announced:
- Up to £1,350 in cost of living payments
- Pension triple lock to stay in £870 boost for seniors
- Benefits including Universal Credit and pension credit to rise with inflation
- New work coach requirements for Universal Credit
- Social housing rents to rise 7%
- Freeze on income tax and National Insurance thresholds
- Stamp duty cut to end in 2025
- Typical energy bills to be capped at £3,000
- Minimum wage to rise to £10.42 an hour
- Extra windfall tax for energy firms
- One million to get £100 for heating oil costs
- Extra £6billion for insulation grants
- Electric car owners to pay road tax from 2025
- Dividend allowance halved
- Inheritance tax and VAT threshold held for two extra years
The Chancellor said: "This government introduced the National Living Wage which has been a giant step to eliminating low pay.
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"So today I am accepting the recommendation of the Low Pay Commission to increase it next year by 9.7%. That means, from April 2023, the hourly rate will be £10.42 which represents an annual pay rise worth over £1600 to a full time worker."
He also announced a £900 payment for people on Universal Credit and £150 payment for disabled people.
The budget detailed how the Treasury is going to fill an estimated £60bn black hole in the public purse.
The gaping hole came about because of the pandemic, Mad Vlad Putin's war in Ukraine, soaring energy costs and Liz Truss' disastrous mini budget.
He attempted to address this through spending cuts and tax rises, including a hike in vehicle excise duty.
However, Mr Hunt is facing a growing revolt among Tory backbenchers over his 'scrooge' budget.
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Ex-Cabinet Minister Esther McVey said she would not vote to put up taxes on earners unless the £155billion “unnecessary vanity project” of HS2 is scrapped.
Other Tory MPs are also privately raging against the Chancellor’s “Austerity 2.0” package to tackle a £50billion hole in the national finances.