The 5 ways it isn’t as generous as it seems

THE touted Budget rises are actually not as munificent as they might first appear…

Inflation could outstrip public sector pay rises

Inflation is running at 3.1% and could go higher. That knocks off almost half of the 6.6% minimum wage lift.

Boris Johnson’s spokesman refused to confirm any public sector pay rises would be above inflation.

It’s an end to a pay freeze, not necessarily a pay rise

All Chancellor Rishi Sunak has announced so far is his intention to end the one-year public sector wage freeze.

Any rises will be decided next year after pay review bodies report back. And review bodies make their recommendations partly based on affordability estimates from government.

Departments may have to make cuts to fund any rises

No10 and ministers refused to say if departments will get extra money in the spending review to fund pay rises.

When NHS staff eventually got a 3% hike in the summer, No10 insisted it would “not impact funding already earmarked for the NHS frontline” although it would come from the NHS budget.

Many expect unprotected departments like justice and local government to have to make cuts.

They are giving wage rises with one hand but taking benefits with the other

The Chancellor claimed the minimum wage rise would give workers £1,000 a year.

But the end of the Universal Credit Covid uplift deprived more than two million workers of £1,040 a year.

Institute For Fiscal Studies chief Paul Johnson said: “A full-time worker on minimum wage and on universal credit would gain about £250 a year from the increase in the National Living Wage. Worth having. But [it’s] not £1,000.”

National Insurance hikes and rising energy bills, petrol and inflation could wipe out any gains

The Tory decision to raise NI to 13.25% on earnings over £9,564 will hit full-time workers on the new minimum wage, though the Treasury insists extra tax for low earners will be small. Rising living costs will hit everyone.