Pay

Treasury written question – answered on 7th February 2022.

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Photo of Kieran Mullan Kieran Mullan Conservative, Crewe and Nantwich

To ask the Chancellor of the Exchequer, what steps his Department is taking to increase wages and support the lowest-income households.

Photo of Simon Clarke Simon Clarke The Chief Secretary to the Treasury

The National Living Wage is increasing by 6.6% to £9.50 an hour for workers aged 23 and over in April 2022, which will benefit more than 2 million workers. This means an increase of over £1,000 to the annual earnings of a full-time worker on the National Living Wage and keeps us on track to our target to end low pay by 2024-25.

We have taken further decisive action to make work pay by cutting the Universal Credit taper rate from 63p to 55p and increasing Universal Credit work allowances by £500 per annum. Taken together, this is a tax cut worth around £1,000 a year for around two million low paid households.

The Government recently announced the ‘Way to Work’ campaign to get 500,000 jobseekers into jobs by the end of June. We know work is the best way for people to get on, to improve their lives and support their families because people on benefits are at least £6,000 better off in full time work.

Through the Plan for Jobs, the Government is also investing £99m in a new In Work Progression offer from April 2022, which will mean more people in work on Universal Credit will be able to access individualised Work Coach support to help them progress and increase their earnings.

The Government is also committed to helping low-income families with the cost of living, including providing £500m for a Household Support Fund to help vulnerable households with costs for essentials such as food, clothing and utilities over the Winter.

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