A raise of the National Living Wage (NLW) to at least £11 was amongst announcements made at this year’s Conservative Party’s Conference, which took place between 1 October and 4 October in Manchester.
Chancellor of the Exchequer Jeremy Hunt also announced plans to increase sanctions for benefits, stating:
“It isn’t fair that someone who refuses to look seriously for a job gets the same as someone trying their best.”
During his speech, the Chancellor explained that the Government’s goal is to further bring down inflation.
In order to do so, the party is aiming for its goal to bring the NLW up to two thirds of median hourly pay by October 2024.
The government is waiting for next year’s recommendation issued by the Low Pay Commission, which has recently reported that the NLW would likely have to be raised to between £10.90 and £11.43.
At the conference Jeremy Hunt promised that whatever the recommendation, the NLW will rise to at least £11 per hour meaning a pay rise for 2,000,000 workers.
Since April 2021 the National Living Wage bracket includes everyone aged 23 and over instead of the previous age group of 25 and over.
This change was made following the Commission’s recommendation that the NLW group should include everyone over the age of 21.
According to a report they published in March 2023, those aged 21 and 22 are due to be included in the National Living Wage group starting April 2024.
If this follows through, it means an increase of 9.6 per cent, just under £1, for everyone in that age group, raising the minimum wage for thousands of students across the UK.
Jeremy Hunt also announced plans to reform the benefits system.
According to him, 100,000 people leave the labour market every year to live on benefits and not enough are seriously looking for new work.
His decision comes less than a year after a statement on the House of Commons Library website, declaring that: “The sanction system in the UK is clear, fair, and effective in promoting positive behaviours to help claimants into work.”
Hunt has not precisely stated what the changes are going to look like, but his aim is to drive more people back into work and off the benefits system.
This has been cause for concern especially for people with disabilities or chronic illnesses who fear that they may find themselves forced to work to survive in the current cost of living crisis.
Image: “Prime Liz Truss appoints Jeremy Hunt as Chancellor” by UK Prime Minister is licensed under CC BY-NC-ND 2.0.