Prime Minister Jeremy Hunt will announce a living wage increase this week, Sky News has learned.
Mr Hunt and Prime Minister Rishi Sunak will accept a formal offer to raise the living wage from £9.50 an hour to around £10.40 an hour, first reported in The Times.
The newspaper said an increase of nearly 10 percent would benefit some 2.5 million people.
Among the other measures reportedly being considered are:
• Payment of living expenses for eight million households worth up to £1,100
• Payments of £650 to recipients of vehicle-tested benefits such as universal credit, £150 to recipients of disability benefits and £300 to household retirement
• Freeze thresholds for income tax, national insurance, VAT, inheritance tax and pension savings
• Removed the requirement that local governments hold a referendum before increasing council taxes by more than 2.99%, allowing them to raise more money. The new threshold could be 5%, The Daily Telegraph reports
The moves are part of a plan to cut spending by £33 billion and raise taxes by £22 billion to close the country’s financial black hole.
The government has said that the poorest households will be given priority, leaving wealthy and middle-income households with the heaviest burden from the tax hike.
One of the main focuses will be on energy costs, with changes to be made to the price guarantee announced in September by Mr Sunak’s predecessor, Liz Truss.
Read more:
Rishi Sunak avoids pledge to 3% defense spending – but points to ‘track record’ of investment
G20 is Rishi Sunak’s first big moment around the world – but it’s not his real test
The price guarantee means a typical household will face energy bills of no more than £2,500 a year, but this could rise to £3,100 from April – and even so This still leaves taxpayers with a large bill.
There has also been suggestion that Thursday’s fall statement could include inflation-boosted benefits and pensions – a move that would cost around £11billion.
Triple lock on state pension – guaranteeing an increase in line with median income, inflation or 2.5%, whichever is higher – is part of the Conservatives’ manifesto in 2019 .
However, as inflation spiked past 10%, it became increasingly expensive.
Read more:
Ed Conway: UK has taken a step forward in recession but it’s worth being wary of forecasts in times of uncertainty
Jeremy Hunt says people will pay higher taxes – but the richest will have to make more sacrifices
Speaking to reporters accompanying him on his trip to the G20 summit in Bali, Mr Sunak said: “My track record as prime minister shows that I care a lot about those pensioners. , especially when it comes to things like energy and heating because they’re especially vulnerable to cold weather.
“That’s why when I announced my support earlier this year as prime minister, we further offered retirees to receive up to £300 alongside winter fuel payments. to help them deal with energy bills during the winter.
“So I’m someone who understands the particular challenge of pensioners.
“They will always be at the top of my mind.”
