Pensioners to escape brutal spending cuts as Sunak set to raise living wage in boost for poorest

15 November 2022, 00:47 | Updated: 15 November 2022, 01:07

Rishi Sunak has said pensioners are "at the forefront of my mind"
Rishi Sunak has said pensioners are "at the forefront of my mind". Picture: Alamy

By Emma Soteriou

Pensioners are set to escape brutal spending cuts as Rishi Sunak raises the living wage in a boost for the poorest.

Listen to this article

Loading audio...

The PM and Jeremy Hunt will accept an official recommendation to increase the living wage from £9.50 an hour to around £10.40 an hour - a rise of nearly 10 per cent - a source told the Times.

Eight million households will also receive cost of living payments worth up to £1,100 as Mr Sunak introduces targeted support for the poorest over universal measures.

Those on universal credit could receive £650, disability benefit recipients £150 and pensioner households £300 - with some people able to claim all three.

However, the energy price guarantee is set to increase from a £2,500 bill for the average home to as much as £3,100 from April.

Treasury sources would neither confirm nor deny speculation ahead of Thursday's statement.

Read more: Dominic Raab 'could bully,' top civil servant tells LBC as Sunak backs under-fire Deputy PM

Read more: 'Rogue state' Russia won't hold Britain hostage, Sunak vows at G20

Rishi Sunak holds a "huddle" press conference with political journalists on board a Government plane
Rishi Sunak holds a "huddle" press conference with political journalists on board a Government plane. Picture: Alamy
Mr Sunak hinted at keeping the pensions triple lock
Mr Sunak hinted at keeping the pensions triple lock. Picture: Alamy

It comes after Mr Sunak hinted at keeping the pensions triple lock - which guarantees an increase in line with average earnings, inflation or 2.5%, whichever is higher - as he spoke to during his trip to the G20 in Bali.

"My track record as Chancellor shows I care very much about those pensioners, particularly when it comes to things like energy and heating because they are especially vulnerable to cold weather," he said.

"That's why when I announced support earlier this year as Chancellor we made extra provision for pensioners to receive up to £300 alongside their winter fuel payments to help them cope with energy bills over the winter.

"So I am someone who understands the particular challenge of pensioners.

"They will always be at the forefront of my mind."

He declined to comment on any specifics in the financial statement, but stressed that "we will put fairness and compassion at the heart of all the decisions we make".

Hunt will deliver the statement on Thursday
Hunt will deliver the statement on Thursday. Picture: Alamy

The Prime Minister and Mr Hunt are said to be considering allowing local authorities to impose larger rises in council tax next year to raise money for social care, among their tax-hiking measures.

Current rules mean local authorities with social care responsibilities must trigger a referendum to increase council tax by more than 2.99%.

The figure could increase to allow rises up to 5% without a public vote, according to the Telegraph.

It means B and D houses could end up paying £100 a year more, with annual bills topping £2,000.

Mr Sunak previously said measures will "put our public finances on a sustainable trajectory.”

More Latest News

See more More Latest News

The case against Donald Trump has been thrown out.

Florida judge dismisses classified documents case against Donald Trump

Gareth Southgate

Gareth Southgate deserves to leave England gracefully. A knighthood could keep everyone happy

England players return home after Euros final heartbreak amid speculation over Southgate's future as Three Lions boss

England players return home after Euros final heartbreak amid speculation over Southgate's future as Three Lions boss

Spanish police reportedly carried on searching for the missing teen despite publicly calling off the search

How Spanish police 'discreetly' continued looking for Jay Slater's body after publicly calling off search

Live
The remains were found near Jay Slater's holiday rental

Live updates: Body found in Jay Slater hunt - Police recover young man's remains from village cliffside

Jay Slater Tenerife timeline: Hunt for missing British teen Jay Slater enters fifth day - here's what we know

Timeline of Jay Slater's disappearance: Everything we know as remains are found 29 days after he went missing

Human remains were found by police looking for missing Jay Slater

Human remains found 'in a very inaccessible area' by police searching for missing 19-year-old Jay Slater

Police have launched a new search for the body of Muriel McKay

'This is our last chance': Police launch new search to find Muriel McKay's body

Flight carrying hungover England fans from Euros makes emergency landing after 'undefined smell' wafts through cabin

Flight carrying hungover England fans from Euros makes emergency landing after 'undefined smell' wafts through cabin

The Prince and Princess of Wales have issued a new image

William and Kate hail 'inspirational' England team as they share photo of Charlotte and Louis watching Euros final

Married school chaplain banned from teaching over illicit relationship with ‘very vulnerable’ student

Married school chaplain banned from teaching over illicit relationship with ‘very vulnerable’ student

'Terrible shot': Trump gunman Thomas Matthew Crooks

Would-be Trump assassin tried to join school shooting club but was rejected for being a ‘comically bad’ shot

England manager Gareth Southgate leaving the team hotel in Berlin, Germany

They're coming home: Forlorn Gareth Southgate and England squad leave Berlin hotel after Euro's heartbreak

Thomas Matthew Crooks pictured in his high school year book from 2022

Thomas Matthew Crooks: Everything we know about the Trump gunman described as a 'bullied loner’

King Charles has sent a private letter to Donald Trump after he was shot in the ear

King Charles sends private message of support to Donald Trump after former president survives assassination attempt

Gareth Southgate after England's defeat against Spain

Gareth Southgate tipped for new honour as his future remains in the balance following Euro's heartbreak