Millions of people in the UK will receive a pay rise of more than £1,600, the Chancellor has announced.
Jeremy Hunt announced he was raising the national living wage from £9.50 an hour to £10.42 an hour, an increase of almost 10%.
Jeremy Hunt told the House of Commons: “Today I accept the recommendation of the Low Pay Commission to increase it by 9.7% next year.
“That means the hourly rate will be £10.42 from April 2023, which is an annual pay increase of over £1,600 for a full-time employee.
“It is expected to benefit more than two million of the country’s lowest-paid workers, keeping us on track to meet our goal of reaching two-thirds of median income by 2024.
“And it’s the biggest cash increase to the UK national living wage ever.”
Elsewhere, Mr Hunt confirmed that both pensions and benefits would rise in line with inflation, a 10.1% rise.
“It’s an expensive commitment, costing £11billion,” Hunt said, “but it means 10 million working-age families will see a much-needed boost over the next year.
“On average, a family on Universal Credit will benefit around £600 over the next year. And to increase the number of households that can benefit from this decision, I will also increase the benefit cap with inflation next year.”
Those were some of Mr. Hunt’s other important announcements in today’s Fall statement.
Some of the country’s top earners pay more tax as the top tax rate is reduced from £150,000 to £125,140, meaning those earning over £150,000 will have to pay an extra £1,200 a year.
Mr Hunt also announced the income tax threshold would be frozen until 2028, meaning millions will end up paying more taxes.
Freezing the threshold means tax margins will stay the same even if wages rise. The threshold was originally frozen until 2026.
Taxes as a percentage of GDP will increase by just 1% over the next five years, Mr Hunt said.
He said he would also reform the unearned income allowance, noting: “The dividend allowance will be cut from £2,000 to £1,000 next year and then to £500 from April 2024.
“The annual capital gains tax allowance will be reduced from £12,300 to £6,000 next year and then to £3,000 from April 2024. Overall, these changes still leave us with more generous allowances than countries like Germany, Ireland, France and Canada.”
https://www.theargus.co.uk/news/23131731.autumn-statement-jeremy-hunt-raises-national-living-wage/?ref=rss Fall Statement: Jeremy Hunt raises the national living wage