MORE MONEY IN FAMILIES' POCKETS

We are helping families with the cost of living, so they have more money in their pockets and can provide for themselves and their families:

  • We are giving the National Living Wage its largest cash boost ever in April to £8.72 – giving nearly 3 million people a well-earned pay rise – and will take it to £10.50 by 2024. The increase means an annual pay rise of £930 for a full-time worker on the NLW, and of £3,600 since we introduced the NLW in 2016. But we want to do more to level up and tackle the cost of living. That is why we pledged to increase the NLW towards a new target of two-thirds of median earnings by 2024, which, on current forecasts, would make it £10.50 per hour (HMT, Press release, 31 December 2019, link).
     
  • Real average weekly earnings are now higher than they were before the financial crisis. Weekly pay reached £512 in the three months to December, which - adjusting for inflation - is the highest since March 2008 (BBC News, 18 February 2020, link).
     
  • We will not raise the rate of income tax, VAT or National Insurance throughout the lifetime of the next Parliament. This tax lock will benefit families across the country, helping them with the cost of living and ensuring they will get the full benefit of economic growth in their pay packets (The Conservative Party, Manifesto 2019, 24 November 2019, link).
     
  • We will increase the National Insurance threshold to £9,500, saving people approximately £100 – cutting taxes for 31 million people and building on our changes to the personal allowance. We will lift hundreds of thousands of people out of paying tax completely by raising the national insurance threshold from £8,632 this year to £9,500 next year. That will be a tax cut for 31 million of approximately £100 per worker (The Conservative Party, Manifesto 2019, 24 November 2019, link).
     
  • We will continue to lead the way and set high standard on workers’ rights, building on the biggest upgrade of rights for a generation. Our Employment Bill will enhance worker’s rights by supporting flexible working, extending unpaid carers’ entitlement to leave and ensuring workers keep their hard-earned tips. This includes creating a new, single enforcement body, offering greater protections for workers and establishing a new £1 billion fund to help hardworking parents manage their work and family commitments (The Conservative Party, Manifesto 2019, 24 November 2019, link).