CHANCELLOR Rishi Sunak unveiled a raft of measures in this afternoon’s spending review designed to help people weather the coronavirus crisis,
New initiatives included a raise to the national living wage, new three-year Restart Programme to help the unemployed and pay rises for NHS workers.
Here we take a look at each of the initiatives announced and explain how they will impact the cash in your pockets:
National living wage rises to £8.91 for workers over 23
One of the core measures announced today was that the National Living Wage will rise to £8.91 per hour from April. It currently stands at £8.72 an hour, meaning an increase of 19p or 2.2%.
The chancellor also announced that the National Living Wage will be expanded to include 23 and 24 year olds. Previously, the national living wage was only available to those aged 25 or above.
Payslips were expected to rise from £8.72 to £9.21 in April next year, but the increase is less than expected due to the coronavirus crisis.
Pay rises for workers under 23
Workers who are younger than 23 do not legally have to be paid the National Living Wage.
Fortunately, the chancellor has also boosted the National Minimum Wages, meaning younger employees will also get a small pay rise.
People aged 21 and 22 will see their wages bumped up from £8.20 to £8.36, while 18 to 20 year olds’ pay will go from £6.45 to £6.56.
Those aged 16 and 17 will see wages increased from £4.55 to £4.62, while pay for apprentices will be £4.15 instead of £4.30.
Pay rises for the NHS – but wage freezes elsewhere in the public sector
Rishi Sunak also announced that doctors, nurses and other NHS workers will be getting a pay rise from next year.
The Treasury has not yet announced how much salaries will rise by, so we can’t calculate how much better off people will be.
Other public sector workers are in for a more gloomy year as the chancellor announced a pay freeze for 2021.
He said: “Coronavirus has deepened the disparity between public and private sector wages.
“In such a difficult context for the private sector – especially for people working in sectors like retail, hospitality, or leisure, I cannot justify a significant, across-the-board pay increase for all public sector workers.”
Pay rise for public sector works with salaries of less than £24k
Lower income public sector workers will be protected from the public sector pay freeze.
The chancellor announced anyone who earns less than £24,000 a year will still receive a pay rise of at least £250 next year.
Help for the unemployed
Rishi Sunak also unveiled a £2.9bn package to help Brits who are unemployed thanks to the coronaviris crisis.
The concept is to give those who have been out of work for 12 months-plus regular intensive support to suit their circumstances.
But the Treasury estimates the scheme could be successful for only around 300,000, though they claim this will make it worthwhile.
