Chancellor announces 'large' wage increase worth more than £1,600

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Chancellor announces 'large' wage increase worth more than £1,600
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It will help up to 2m people

A 'large' increase will be made to the national living wage next year, Chancellor Jeremy Hunt announced in a package to help the hard-up. Speaking in his autumn statement in the Commons this lunchtime, he said the the national living wage would be increased to £10.42 from April 2023.

He claimed this would help two million of the lowest paid workers in the UK and was in step with the target to reach two-thirds of median earnings by 2024, as reported by Coventry Live. In real terms for someone on the living wage this change will account to a £1,600 pay rise. Mr Hunt told the Commons: “Today, I am accepting the recommendation of the Low Pay Commission to increase it next year by 9.7 percent. That means, from April 2023, the hourly rate will be £10.42 which represents an annual pay rise worth over £1,600 to a full time worker."It is expected to benefit over two million of the lowest paid workers in the country and keeps us on track for our target to reach two-thirds of median earnings by 2024.

Social rent rises will also be capped in a move designed to help people in social housing - while benefits and pensions will go up as planned as Mr Hunt revealed the 'triple lock' will be protected. In addition, payments of £300 would be made to pensioner households. Payments of £150 will also be made for individuals on disability benefit.

In addition, Mr Hunt said the Energy Price Guarantee will carry on for a further 12 months at a higher level of £3,000 per year for the average home. The Chancellor said the Government would also cap the rise in social rents to a maximum of 7 percent in 2023-2024.

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