The UK’s national living wage is to increase from £8.91 to £9.50 in this week’s Budget, the Treasury has confirmed, with Conservatives claiming full-time workers will earn an extra £1,000-a-year as a result.
Previously known as the national minimum wage, the change will apply to workers aged 23 and over, with a lower rate in place for younger workers.
Ministers have already pledged to raise the adult rate to two thirds of median earnings by the end of the Parliament – around £10.40 – with Labour saying it wants a minimum wage of at least £10.
But the wage rise comes at the same time as the government increases national insurance contributions for low earners and cuts universal credit (UC) payments. “This is a good thing to be applauded,” tweeted left-wing commentator Owen Jones, “but it’s offset by a cut in UC that leaves many low-paid workers in poverty.”
Elsewhere, Sajid Javid, the health secretary, admitted it is “impossible to know” whether the NHS backlog will be cleared within three years, despite the Treasury pledging £6bn to help solve the problem as part of Rishi Sunak’s autumn Budget.
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ICYMI: Johnson says ‘recycling doesn’t work’ and plastic use needs to be cut down
Boris Johnson has insisted that recycling plastic “doesn’t work” as he told a press conference with schoolchildren in Downing Street that the answer was to cut down our use of the material.
“It doesn’t begin to address the problem. You can only recycle plastic a couple of times, really. What you’ve got to do is stop the production of plastic,” Mr Johnson said.
Our reporter, Holly Bancroft, has the full story below:
Small businesses body calls for increase in support after living wage rise
The Federation of Small Businesses has called on ministers to increase the small business Employment Allowance as the national living wage rises to prevent higher wage bills leading to job losses.
“The Treasury must play its part to secure wage increases – the taxman will gain almost £500 for every worker whose pay increases to £9.50 an hour,” Mike Cherry, the Federation of Small Businesses’ national chair, said.
“Larger-than-expected increases in the Living Wage must be matched by support for those who will struggle to afford to maintain jobs – these are the smallest employers, up and down the country, who need to see the extension of the small business Employment Allowance, which covers the first £4,000 of Employer NICs (National Insurance Contributions).
“Without an increase in the EA, 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.”
Mr Cherry added: “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.”
‘Government must sets its sights higher’ on pay, TUC chief says
The government “must set its sights higher” on the issue of pay, TUC general-secretary Frances O’Grady has said, after the Treasury announced it would be raising the national living wage to £9.50 per hour.
“With Britain in the midst of a cost-of-living crisis, boosting the minimum wage is vital. But the government must set its sights higher,” Ms O’Grady said.
“We need a £10 minimum wage now and we need ministers to cancel the cut to Universal Credit.
“This increase won’t come into effect until next spring, by which time many household budgets will have been hammered by rising bills and the Universal Credit cut.”
On reports that chancellor Rishi Sunak would also end the public-sector pay freeze in the spending review this week, she added: “The pay freeze won’t be over unless the chancellor fully funds pay rises above the rising cost of living.
“Otherwise, he will force departments to choose between pay cuts or service cuts.”
Our deputy political editor, Rob Merrick, has more details below on the reports that wealthy countries will not achieve the $100bn climate finance target for poorer nations until 2023:
Cop26 president says he understands ‘deep frustration’ at climate finance failures
Cop26 president Alok Sharma has said it is understandable that developing countries feel “deep frustration” over the failure by wealthier countries to reach a $100bn (£72bn) a year funding target to tackle climate change.
A report published on Monday found that wealthy nations would not deliver the long-promised $100bn a year in climate finance for poor countries until 2023, three years late.
The pledge, which was first made in 2009, has become a key commitment for international climate action to support countries which have done the least to contribute to the crisis but are most vulnerable to its impacts.
You can find Mr Sharma’s comments in full below:
Sturgeon warns world leaders of ‘entirely justified anger’ over climate progress
Nicola Sturgeon has warned that Cop26 needs to see “significant uplift” in the pledges to cut carbon emissions as world leaders must recognise growing levels of anger at the inaction over climate change.
Speaking to an audience of students and young people in Glasgow, Ms Sturgeon called on leaders to take “credible action” to achieve net zero.
Our environment correspondent, Harry Cockburn, has the full story below:
Workers will be ‘bitterly disappointed’ with impact of pay rise, Lib Dems say
Workers will be “bitterly disappointed” when they see “almost half of any rise [in income] snatched away by the Treasury before it even reaches their bank accounts”, the Liberal Democrats have said.
“Instead of a fair deal, families across the country are facing a Budget nightmare with a soaring rise to the cost of living paired with tax hikes left, right and centre,” Liberal Democrat Treasury spokesperson Christine Jardine said in a statement.
Earlier this year, Rishi Sunak increased National Insurance Contributions for workers by 1.25 per cent to help pay for NHS and social care reforms and also ended the £20-a-week Universal Credit uplift.
Labour dismisses government’s ‘underwhelming’ national living wage increase
Labour has dismissed what it calls the government’s “underwhelming offer” on pay, after it was announced that the national living wage is set to rise to £9.50 per hour.
“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,” Bridget Phillipson, shadow chief secretary to the Treasury, said.
“It’s clear that Labour is the only party serious about improving the prospects of working people.”
Our reporter, Matt Mathers, has more details below on the warnings for drivers today over the rising price of petrol in the UK:
Scottish Labour councillor moves to Tories over party’s ‘weak’ stance on indyref2
A member of West Lothian Council criticised the Scottish Labour Party for being “weak on the union” as she announced she would be leaving the party to join the Scottish Conservatives.
Angela Doran-Timpson claimed some Labour councillors would “even be happy” for Scotland to have a second independence referendum, so-called the indyref2, and accused the party of not being strong enough in standing up to the SNP.
Ms Doran-Timpson, who represents the Broxburn, Uphall and Winchburgh area, said:
“Over and over again, Labour have been weak on the union and not strong enough in standing up to the SNP. At council meetings, they have not been prepared to oppose the SNP. Some in the Labour group would even be happy to see indyref2.
“I am joining the Scottish Conservatives because they are the only party strong enough to stop the SNP and the only party that stands up for Scotland’s place in the United Kingdom every time.
“As a work coach, I firmly believe we must be absolutely focused on creating more jobs and helping people back into work above all else. Our top priority has to be Scotland’s recovery, not another referendum.”
Scottish Conservative leader Douglas Ross said Ms Doran-Timpson’s move “proves once more” his party is the “real alternative for working people across Scotland who want to remove the SNP”, adding: “More and more ex-Labour voters, just like Angela, have decided to vote Scottish Conservative in recent elections.”
