Increases to public sector pay and minimum wage will not prevent cost of living crisis

While chancellor will want to claim he is being as generous as he can be, he is taking away more with one hand than he is giving with the other, writes Ben Chapman

Tuesday 26 October 2021 21:30
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<p>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</p>

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

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With an increase to the minimum wage and the end of a public sector pay freeze, it seems clear that the chancellor is seeking to present himself as the friend of ordinary working people.

Around 2 million citizens on minimum wage will see a 6.6 per cent increase in their pay, which will go up to £9.50 next year. Up to 5 million more public sector workers are also in line for a pay increase in 2022 after a year-long freeze.

But the announcements expected to be made in the Budget this week should be put into context.

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