JEREMY Hunt is expected to confirm a boost to the national living wage beginning next April.
The Chancellor is understood to have drawn up plans for a ten per cent hike, which will see the threshold rise from £9.50 to £10.40 an hour.
Jeremy Hunt is expected to announce a boost to the national living wage todayCredit: PA
The move will mean a pay day for more than 2.5m Brits.
The national living wage is the minimum amount all employers have to pay staff aged 23 and over.
Those younger than 23 can be paid the national minimum wage instead, which is £9.18 for 21 – 22-year-olds and £6.83 for those aged 18 – 20.
During the budget, the Chancellor is also set to raise the National Living Wage to £10.40 as well as hiking pensions and benefits by inflation.
Read more about Jeremy Hunt’s budget on the Autumn Statement live blog
But he will offset the handouts with sweeping spending cuts and tax rises to repair a £60billion black hole in the nation’s finances.
The national living wage is different from the real living wage, which sits at £11.95 in London and £10.90 for the rest of the UK.
The real living wage is set by the charity Living Wage Foundation, and isn’t compulsory for bosses to follow.
However, 11,000 UK businesses voluntarily pay it to staff members.
Mr Hunt will give more details about the living wage hike at 11.30am when he delivers his Autumn Statement.
The budget will detail how the Treasury is going to fill an estimated £60bn black hole in the public purse.
The gaping hole came about because of the pandemic, Mad Vlad Putin’s war in Ukraine, soaring energy costs and Liz Truss’ disastrous mini budget.
Mr Hunt will soon say: “As countries all over the world grapple with inflation, our plan reflects British values: we are both honest about the challenges, and fair in our solutions.
“We are taking difficult decisions to deliver strong public finances and help keep mortgage rates low, but our plan also protects our long-term economic growth.
“At the same time, we protect the vulnerable, because to be British is to be compassionate.”
The Chancellor will add: “There is a global energy crisis, a global inflation crisis and a global economic crisis.
“But the British people are tough, inventive, and resourceful. We have risen to bigger challenges before.
“We aren’t immune to these global headwinds, but with this plan for stability, growth and public services – we will face into the storm”.
Alongside hiking the minimum wage, the Chancellor is set to give councils more powers to raise local taxes to pay for social care.
Currently local government chiefs are only allowed to hike it by 2.99 per cent plus a one per cent levy for elderly care without a local referendum.
But the threshold for such a vote is set to be raised to 5 per cent.
Meanwhile Mr Hunt will call time on the £10billion a month universal energy bills support – with only the least well off in line for hefty support.
Bills for the average home are set to be capped £500 higher than now at £3,000.