‘Britain turning corner as energy bills slashed and Living Wage rises’
FALLING energy bills and a hike in the National Living Wage will mean a boost of nearly £4,000 for thousands of households.
Energy Secretary Claire Coutinho, writing in the Express, says: “We are turning a corner. Energy prices have now dropped to their lowest level in two years.”
It comes as the living wage rises from £10.42 an hour to £11.44 today, which will mean an extra £1,800 a year for a full-time worker.
And Rishi Sunak said a raft of economic measures that come into force at the same time means more money for families to help “ignite” the economy this year.
The Prime Minister said: “Today’s measures could save households around £3,850 year on average which – taken with the upcoming cuts to national insurance contributions – will put more money in their pockets to help ignite the economy.
“Although recent years have tested our resolve, we have not bowed. We have stuck to the plan, more than halved inflation, and set us on a path to growth.
“Because of this determination, we find ourselves in a new economic moment and – thanks to our bumper package of economic reforms coming into force today – 2024 is set to be the year Britain bounces back.”
Households will also save around £250 annually on average with the fall in Ofgem’s energy price cap, down 12.3% on the previous quarter.
A low-income two-parent family will be better off by £3,850. It comes alongside the roll out of 15 hours of free childcare, which will save working parents an average of £3,450 a year.
Kate Smith, pensions boss at life insurance giant Aegon, said the wage increase “is good news for workers on the National Living Wage for the very obvious reason that it boosts pay packets, but the hidden benefit is that it will also have a positive impact on workplace pension contributions”.
Low Pay Commission chairwoman Baroness Philippa Stroud added: “The target has boosted the incomes of low-paid workers in especially turbulent times and the evidence suggests the increases to date have been implemented steadily and carefully so as not to damage employment opportunities.”