British Finance Minister Jeremy Hunt is expected to announce to unveil raising the region's minimum wage to $13.50 per hour.
The remarks will be made in Hunt's annual Conservative party conference speech, where he is also expected to ignore a growing clamor for tax cuts within his party. The extracts of Hunt's speech that the party released made no reference to taxes after Conservative lawmakers, including senior minister Michael Gove, have called for tax cuts ahead of an election expected to come next year.
Britain's Minimum Wage
Hunt ruled out near-term tax cuts ahead of a mid-year fiscal statement due on Nov. 22. Additionally, the finance minister has supported British Prime Minister Rishi Sunak's goal to halve inflation rather than lower taxes this year.
This comes as average weekly earnings have risen considerably for workers across the board, which the Bank of England has said is its biggest concern regarding inflationary pressures. Hunt is expected to announce on Monday that the living wage for the region's workers at least 23 years old will increase from $12.70, as per Reuters.
The official said they are waiting for the Low Pay Commission to confirm its recommendation for next year. However, he said he could confirm that they will increase it next year to at least $13.50 per hour, whatever recommendation is given.
He is also set to announce a review that seeks to toughen the benefit sanctions system. Before the finance minister's speech, former Prime Minister Liz Truss is expected to pressure the government to lower taxes in her only expected intervention at this year's conference.
Last year, when Truss was still prime minister, she had to scale back her tax-cutting plans in a U-turn at the conference. The market turmoil she sparked forced her resignation in October that same year.
Low Pay Commission's Recommendation
The British government decides salary rates in the region every year based on the advice of an independent advisory group, the Low Pay Commission. Generally, ministers accept the commission's recommendations, according to BBC.
The British government had already set a target for the national living wage to reach two-thirds of the median hourly pay by October of next year. While it has not yet confirmed its recommendations, the commission estimates that the rate needed to meet the government's target should be between $13.29 and $13.94.
Regarding the benefit sanctions system, Hunt is supposedly considering an option that involves closing the claims of those with six months or more of a "nil award." This can happen if someone is persistently sanctioned or no longer qualifies.
Under the plan, the claimant would be barred from making a new claim for a certain period to prevent people from sticking to their "claimant commitment." The Conservatives seem to be using tougher rhetoric on benefit claimants ahead of the election because they believe it could be a dividing line with the opposition of appearing tougher on welfare spending, said The Guardian.
