Next April, the national living wage will increase to at least £11 per hour, according to an announcement that Chancellor Jeremy Hunt is expected to make during today’s Conservative Party conference. The move is set to help two million of the country’s lowest-paid workers, but it comes as Prime Minister Rishi Sunak is under increasing pressure from some Conservative Party members to cut taxes instead.
At present, the national living wage sits at £10.42 per hour and only applies to workers over the age of 23. Rates are decided annually by the government and the advice of independent advisory group the Low Pay Commission. Younger workers are usually paid at a lower rate. The government had already expressed a target for the national living wage to reach two-thirds of median hourly pay by October 2022, and the Low Pay Commission has yet to confirm its recommendation for next year.
During today’s speech, Hunt is also set to announce a review of the benefits sanctions regime. The review comes in the wake of around 100,000 people each year continuing to opt for a life on benefits rather than seeking employment, despite some companies’ difficulties finding workers. Further news on the reform to the benefits system is expected with the Autumn Statement in November, but Work and Pensions Secretary, Mel Stride, has said that part of the review will focus on the “Work Capability Assessment” so that it reflects the modern world, including increased opportunities for home-working.
The Chancellor believes that getting disabled or unwell people back into work is vital for the government’s strategy to grow the economy; however, the number of people unable to work due to long-term sickness has increased significantly, with recent figures indicating that 2.5 million people were missing from the labour market due to medical conditions
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