Afternoon summary
Prof Sir Chris Whitty, the chief medical officer for England, has brushed aside claims that he should have done more to force No 10 to take the Covid threat seriously in February 2020. (See 3.24pm.)
David Cameron, the new foreign secretary, has used his maiden speech in the Lords to defend his record as PM and to make a jibe about Boris Johnson’s “illusions”. (See 4.18pm.)
The Low Pay Commission has said that next year the “national living wage” will be worth two-thirds of the median wage, putting the UK “at the forefront of comparable economies”. As the government announced it was accepting the LPC’s recommendations, which will see the main rate rise to £11.44 per hour (see 4.54pm), Bryan Sanderson, the LPC chair, said in a statement:
The national living wage has delivered an improved standard of living to thousands of people who care for our children and elderly, work in farms and shops and at many other essential jobs. These efforts over the lifetime of the NLW mean over £9,000 PA more to a full-time worker without any increase in unemployment.
This hasn’t been easy for employers, with the economy facing a range of unprecedented challenges in recent years. The high degree of political and economic uncertainty has made assessing and forecasting the performance of the economy, and therefore our task, very difficult. It is a tribute to my fellow commissioners that we have continued to achieve consensus.
Our new recommendation of a national living wage of £11.44 attempts to steer a path through this uncertainty and achieve the government target of two-thirds of the median wage, an outcome which if accepted would position the UK at the forefront of comparable economies.
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Hunt says 'national living wage' going up to £11.44 per hour next year
In his speech to the Conservative party conference Jeremy Hunt, the chancellor, said the “national living wage” would be going up to at least £11 per hour. This afternoon the Treasury has announced that, in the autumn statement tomorrow, it will rise to £11.44 per hour. It says:
The chancellor will deliver a pay rise of more than £1,800 a year for a full-time worker, as he confirms that the national living wage will increase by over a pound an hour from April.
The almost 10% pay boost, from £10.42 to £11.44 an hour, is the biggest cash increase in the national living wage in more than a decade and fulfils the government’s manifesto pledge to end low pay for those on the national living wage.
Eligibility for the national living wage will also be extended by reducing the age threshold to 21-year-olds for the first time. A 21-year-old will get a 12.4% increase, from £10.18 this year to £11.44 next year, worth almost £2,300 a year for a full-time worker.
National minimum wage rates for younger workers will also increase. 18-20-year-olds will get a wage boost to £8.60 per hour – a £1.11 hourly pay bump.
The Department for Business and Trade estimate 2.7 million workers will directly benefit from the 2024 national living wage increase.
The Treasury says this means the government has now achieved its target of lifting the “national living wage” to two-thirds of median earnings by 2024.
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