Budget 2021: Living wage and minimum wage increases to be announced in Wednesday's budget

By lifting the national living wage to £9.50 an hour, this brings it closer to the real living costs of those outside London, according to an independent campaign group.

10/25/2021 8:34:00 PM

Three stories: 🔴 Living wage & minimum wage set to rise in budget 🔴 Facebook groups push users to 'extreme interests' - whistleblower 🔴 Petrol prices hit 142.94p a litre, data shows - beating 2012 record

By lifting the national living wage to £9.50 an hour, this brings it closer to the real living costs of those outside London, according to an independent campaign group.

Despite its name, the national living wage is not based on the true cost of living, however, increasing it to £9.50 an hour brings it closer to the actual living wage of those outside London, according to the Living Wage Foundation.The independent campaign organisation says the living wage inside London is £10.85 an hour but is set to rise in November for the capital and the rest of the country.

What next for Boris Johnson after the No 10 party video? Contemporary stereo cabinets and consoles for good-looking audio Editorial: If Putin thought he could get away with it, he’d invade Ukraine now

Chancellor Rishi Sunak said:"This is a government that is on the side of working people. This wage boost ensures we're making work pay and keeps us on track to meet our target to end low pay by the end of this parliament."What do businesses want out of Rishi Sunak's budget?

Criticism the rise is not enough - as others say it will hit small businessesThe Institute for Fiscal Studies said much of the increase in the living wage would be eaten up by inflation.Senior research economist Tom Waters said:"First, while this boosts earnings for full-time minimum wage workers by over £1,000 per year, those on Universal Credit will see their disposable income go up by just £250 because their taxes rise and benefit receipt falls as their earnings increase. headtopics.com

"Second, minimum wage workers are most heavily concentrated around the middle of the household income distribution - not the bottom - often because they live with a higher earning partner. That means that the minimum wage is a very imperfect tool to offset cuts to benefits, which are much more targeted at the poorest households.

"Third, rising inflation will also blunt the real-terms value of this minimum wage hike - and of course while prices are rising now, the increase in the minimum wage won't kick in until April."Labour's shadow chief secretary to the Treasury Bridget Phillipson called the rise"underwhelming".

Please use Chrome browser for a more accessible video player£6bn of funding for NHS"This underwhelming offer works out at £1,000 a year less than Labour's existing plans for a minimum wage of at least £10 per hour for people working full-time," she said.

"Much of it will be swallowed up by the government's tax rises, Universal Credit cuts and failure to get a grip on energy bills."Graham Griffiths, director of the Living Wage Foundation, welcomed the increase but said when the foundation announces the new actual living wage next month there will be a"substantial gap" between the new living wage and the real living wage thanks to fuel and energy price rises and cuts to household incomes. headtopics.com

Omicron significantly reduces Covid antibodies generated by Pfizer vaccine, study finds Covid: Vaccines should work against Omicron variant, WHO says Kellogg to replace 1,400 striking workers as workers reject deal

He said:"We all need a wage that provides a decent standard of living. If we're to recover and rebuild over the coming months and years, we'll need to see more employers commit to go beyond this new government minimum, do the right thing, and commit to pay a real living wage."

The Federation of Small Businesses (FSB) said every worker whose pay increases to £9.50 an hour will have to pay taxes of almost £500 so said there needs to be support for the smallest employers in the form of an extension of the small business employment allowance, which covers the first £4,000 of employer national insurance contributions.

FSB national chair Mike Cherry said:"Without an increase in the employment allowance, the combination in April of higher wage bills and higher tax bills will see many more than the forecast of 50,000 people added to unemployment queues.Please use Chrome browser for a more accessible video player

What can we expect from the Budget?"After pre-briefed announcements to help the banks with their tax bills, and to help international companies to invest here, there needs to be a clear offer from this government to small businesses, too."Increasing the employment allowance, alongside reforming of upfront costs such as business rates, are the most important reforms called for today by the UK's small business community." headtopics.com

Dr Mat Johnson, senior lecturer in employment studies at Alliance Manchester Business School, told Sky News the 6.6% rise is"quite modest" because inflation is expected to hit 5% early next year.He added that the rise coincides with the removal of the £20 Universal Credit uplift and"fails to recognise the sharp clawback of earnings" for those working and claiming Universal Credit as they will have higher tax and National Insurance contributions.

The Treasury said the changes mean the government is accepting all recommendations made by the Low Pay Commission independent advisory board.Follow budget coverage live on Sky News on Wednesday with the chancellor's announcement from 12.30pm Read more: Sky News »

'Wrong' for Christmas party in Number 10 last year, says Dominic Raab - but he dismisses 'unsubstantiated claims'

Deputy PM Dominic Raab acknowledges that 'if anyone held a party contrary to the rules, of course that's the wrong thing to do'. But he dismisses 'unsubstantiated claims' of a festive bash in Number 10 last year when indoor mixing was banned in London.

Budget 2021: Extra £5.9bn pledged for NHS backlog in EnglandHealth leaders welcome the money but say it only goes so far and staff shortages need to be fixed. one off payments don't fix a decade of systemic strangulation. Not sure the word 'pledged ' gives me much confidence 🤔 Is it actually extra or are they repackaging and re-announcing?

Budget 2021 LIVE:Sunak 'to unveil' state pension age change lifeline after triple lock axeCHANCELLOR Rishi Sunak will unveil the latest Budget and Spending Review on Wednesday and there is already plenty of speculation on what it could contain. ** You have always been able to defer your retirement age usual smoke & mirrors from a tory chancellor. Stop taking pensioners money..they earned it..not Monopoly Sir....

Budget 2021: £2bn for new homes on derelict or unused landThe government says the funding will 'unlock' 160,000 greener homes on brownfield land. Yeah yeah yeah we've heard all this before from Tories, look at all the previous schemes announced, the same houses, the same land, the same nonexistent cash and broken promises, but go on, just repeat Tory lies. Also noted you've totally ignored the raw sewage they voted for. More land what is used as rain run offs but put concrete down nowhere for water to go drains struggling now

When is the Autumn Budget 2021?Chancellor Rishi Sunak expected to try to rebalance books after massive borrowing to pay for pandemic, with jobs plan, minimum wage, council tax and student loans in the spotlight

Autumn Budget 2021: How Rishi Sunak could affect your financesRISHI Sunak is preparing to announce his Budget this week that will have a major impact on YOUR finances. A blizzard of announcements have already been confirmed including cash for more houses and … Stop working or is this person the same person?

Budget 2021: Rishi Sunak fails to commit to eastern HS2 leg days before autumn Budget is revealed in CommonsSome have predicted that Rishi Sunak will scrap a major part of the HS2 rail project and scale down other big infrastructure schemes when he unveils his Budget on Wednesday. What is the point of the big autumn Budget ' we all know what is going on . All this government can do is run to the media first to put out what doing to make them self look good so we was told what coming to day can have Wednesday off ' govern the country by media what a world Not happening then This government we should get them out of power ok from Gary Scott Arstall