Chancellor says economic recovery will allow him to help teachers and nurses
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Rishi Sunak'S 2021 Budget will include an end to the year-long public sector wage freeze imposed during the coronavirus pandemic, the Treasury has said.
The chancellor said in a statement ahead of his Commons speech on Wednesday that “with the economy firmly back on track, it’s right that nurses, teachers and all the other public sector workers who played their part during the pandemic see their wages rise”.
Contudo, unions warned any pay rises must be above the rate of inflation, which is soaring. On Tuesday morning Paul Scully, the business minister, was unable to confirm this would be the case, saying any rises would be based on the recommendations of pay review bodies.
Enquanto isso, the government has also announced a rise in the minimum wage for workers aged 23 or older. Algum 2 million people on the so-called “national living wage” will see their pay increase from £8.91 an hour to £9.50 from 1 abril.
Minimum pay for 21- and 22-year-olds is also set to rise, as well as for apprentices.
Living wage hike will cause small firms to struggle, lobby group claims
The UK’s smallest companies could struggle to fill jobs because of the impending living wage rise, a lobby group has claimed.
Mike Cherry, the chairman of the Federation of Small Businesses, told LBC he was worried about Rishi Sunak’s Budget.
Ele disse: “For the smallest employers they will struggle to maintain jobs they need because of the increase of the national living wage, and employees will have to face the increase of NI contributions next April so it is problems all around.
“As we look at consumers we should look at businesses and tradesman, the cost of diesel and the cost of materials. That’s alongside debts and coming out of the pandemic.”
Ele adicionou: “The smallest businesses will really struggle to keep people employed with the living wage going up higher than expected. The government should increase the employment allowance to allow businesses to employ people on their books.”
Minister can’t say if public sector pay will keep pace with inflation
Paul Scully, the business minister, has refused to say whether public sector workers will get an above-inflation pay rise next year.
The Treasury has announced an end to the coronavirus-driven public sector pay freeze ahead of Rishi Sunak’s Budget speech tomorrow.
Contudo, Mr Scully said the level of any increase would depend on the recommendations of the pay review bodies when they report in the spring.
Speaking on Sky News, he declined to say whether they would be above the rate of inflation at the time.
“That will be determined by the pay review bodies. The chancellor is keen to give people a rise,” ele disse.
“They will then take that into account as they look to what should be an appropriate rise for the public sector, given the public finances.
“I can’t pre-empt what they are going to do. We will see where we are come next April when the review bodies have reported.”
Minimum and living wages to rise
Algum 2 million workers will get a pay rise next year when the national living wage is increased from £8.91 an hour to £9.50.
The change will take effect on 1 abril, the Treasury said ahead of Rishi Sunak’s Budget address.
The 59p hourly boost will mean a full-time worker on the living wage will get a pay rise of more than £1,000 per year, according to the government.
But critics questioned how much better off workers will be considering the chancellor has already hiked National Insurance and cut universal credit as inflation rises. Many universal credit claimants are in work.
Apesar disso, a 6.6 per cent hike is more than twice the current consumer price inflation rate of 3.1 por cento.
While the national minimum wage applies to everyone of school-leaving age, the living wage is for the over-23s.
For those aged 21 e 22, the minimum wage will rise from £8.36 an hour to £9.18, while the figure for apprentices will go from £4.30 to £4.81 per hour.
Public sector pay freeze imposed on millions during pandemic to be lifted
The government is set to lift the public sector pay freeze it imposed on millions of workers last year, Rishi Sunak will announce on Wednesday.
The partial pay freeze was imposed by the chancellor in response to the coronavirus pandemic, and was described by unions as “kick in the teeth” for key workers who it hit, escreve Jon Stone.
Critics accused the chancellor of economic mismanagement for taking demand out of the economy during a downturn, but Mr Sunak said he wanted public sector wages to match “the context of the wider economic climate” in which wages were falling.
‘It’s right that nurses, teachers and all the other public sector workers who played their part during the pandemic see their wages rise’