On Thursday, the chancellor is scheduled to make the fall statement, in which he will outline how the United Kingdom will close a £60 billion financial gap.
This week, Chancellor Jeremy Hunt will announce an increase in the national living wage.
According to news in The Times, Mr. Hunt and Prime Minister Rishi Sunak would accept an official suggestion to enhance the living wage from £9.50 per hour to approximately £10.40 per hour.
The publication reported that the increase of about 10% will help approximately 2.5 million people.
Among the other purportedly considered measures are:
• Cost of living payments of up to £1,100 for eight million households
• Payments of £650 for people receiving means-tested benefits like universal credit, £150 for those receiving disability payments, and £300 for pensioner households.
• Freezing income tax, national insurance, VAT, inheritance tax, and pension savings thresholds.
• Removing the necessity for local governments to seek a referendum before increasing council tax by more than 2.99%, allowing them to raise much more money. The new bar might be 5%, according to The Daily Telegraph
The measures are part of efforts to reduce spending by £33bn and raise taxes by £22bn to close a financial gap.
The administration has previously stated that priority will be given to the poorest households, leaving wealthy and middle-income households to bear the brunt of tax increases.
One of the primary areas of concentration will be energy costs, with revisions to the price guarantee announced by Mr. Sunak’s predecessor, Liz Truss, in September.
The price guarantee ensured that a typical household’s annual energy expenses would not exceed £2,500, but this could increase to as much as £3,100 in April, leaving taxpayers with a hefty charge.
There have also been rumors that Thursday’s fall budget could contain an increase in benefits and pensions in line with inflation, a move that will cost approximately £11 billion.
The triple lock on state pensions, which assures an increase in line with average earnings, inflation, or 2.5%, whichever is greater, was included in the 2019 Conservative platform.
However, since inflation has surpassed 10%, it has become more expensive.
Mr. Sunak told reporters accompanying him on his trip to the G20 conference in Bali, “My track record as chancellor demonstrates that I care deeply about seniors, especially when it comes to energy and heating because they are particularly susceptible to cold weather.
“Because of this, when I announced support earlier this year as chancellor, we created further provisions for retirees to receive up to £300 in addition to their winter fuel payments to assist them in paying their energy bills throughout the winter months.
Therefore, I am someone who knows the unique challenges faced by retirees.
They will always be in my mind’s forefront.
