Jeremy Hunt has announced the National Living Wage for over-23s will be increased from £9.50 an hour to £10.42. The rise in living wage is set to go ahead next April and was confirmed during the the chancellor's Autumn Statement this afternoon (November 17).
In what Hunt described as the 'largest increase in the UK's national living wage ever' the 9.7% increase represents an annual pay rise worth over £1,600 for a full time worker. Speaking at the House of Commons Hunt said: "It's expected to benefit over two million of the lowest paid workers in our country and keeps us on track for our target to reach two thirds of median earnings by 2024 and it is the largest increase in the UK's national living wage ever."
READ MORE: Everything chancellor Jeremy Hunt announced about Universal Credit in Autumn Budget
The National Living Wage increases every April, and the new rates are announced months in advance, to allow firms to prepare.
During this his statement Mr Hunt announced that everyone in the UK would be paying more tax after freezing income tax thresholds, and from April the energy price guarantee will rise by £500 - meaning households will typically pay £3,000 a year in bills. He also announced that the UK economy was already in recession, according to the Office for Budget Responsibility.
In his Autumn Budget, Mr Hunt has also reduced the threshold at which the top rate of income tax is paid from £150,000 to £125,140, and increased the windfall tax on oil and gas giants from 25% to 35%.
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