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Tory Budget: Chancellor confirms minimum wage and public sector pay set to rise
Published 15:02 27 Oct 2021 BST
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Chancellor Rishi Sunak has confirmed the minimum wage will increase and public sector workers will also get a pay rise
The Chancellor has delivered the Treasury budget to the House of Commons earlier today (October 27). Rishi Sunak confirmed an end to the pay freeze and a rise in minimum wage - but Labour say the increases aren't enough.Tories confirms nurses, teachers and members of the armed forces will benefit from a public sector pay rise
Chancellor Rishi Sunak has confirmed a public sector pay rise that will benefit many of Britain's key workers including nurses, teachers, police and prison officers. Confirming an end to the public sector pay freeze, he said: "The economic impact and uncertainty of the virus meant we had to take the difficult decision to pause public sector pay."And now, with the economy firmly back on track, it's right that nurses, teachers and all the other public sector workers who played their part during the pandemic see their wages rise."
Last November, Sunak imposed a pay freeze on over 1.3 million frontline employees, citing the "economic emergency" caused by covid. The Chancellor said he couldn't justify a public sector increase, when many in the private sector had seen their pay cut during the pandemic.The freeze was not received well by civil servants, teachers, police, firefighters, the armed forces and council staff - most of whom were key workers and had not been eligible for furlough payments.
Labour say that despite today's announcement, families still face a cost of living crisis due to rising tax and energy costs.
Shadow Chancellor Rachel Reeves welcomed government action on the "pay pause" but said it wouldn't be enough to tackle the "cost of living crisis" households will face this Christmas.Labour say minimum wage cash boost not enough
Shadow Chancellor Reeves tells the Commons the Tory minimum wage increase needs to be higher. The minimum rate of pay for those aged over 23 will be rising to £9.50 an hour from £8.91.For people aged 21-22, the National Minimum Wage will increase from £8.36 to £9.18 an hour and the Apprentice Rate will increase from £4.30 to £4.81 an hour.
This means a full-time worker will get £1,074 extra a year before tax.
Workers on minimum wage will receive a cash boost after the Chancellor confirmed the minimum wage will rise from April 2022. Labour have previously pushed for a national minimum wage of £10 an hour. Labour Leader Sir Keir Starmer said the promised increase would deliver an extra £2,500 per year to key workers, namely, carers.Universal Credit recipients to get cash boost
Chancellor Rishi Sunak also unveiled a cut to the Universal Credit Taper, which he claimed would save two million families £1,000 per year. Those on Universal Credit will have their state support cut dependent on the number of hours worked. Sunak will reduce the rate from 63 per cent to 55 per cent, which could provide a desperately needed boost for low income households.
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