Mr Hunt and Prime Minister Rishi Sunak will accept a formal recommendation to increase the living wage from £9.50 an hour to around £10.40 an hour, according to news first reported in The Times. The nearly 10 percent rise would benefit about 2.5 million people, the paper said. Among the other measures reportedly under consideration are: • Cost of living payments for eight million households worth up to £1,100 • Payments of £650 for those receiving means-tested benefits such as Universal Credit, £150 for disability benefit recipients and £300 for pensioner households • Freezing of income limits tax, national insurance, VAT, Inheritance Tax and Pension Savings• Remove the requirement for local authorities to hold a referendum before raising council tax by more than 2.99%, allowing them to raise significantly more money. The new limit could be 5%, the Daily Telegraph reported The moves are part of plans to cut spending by £33bn and raise taxes by £22bn to plug a black hole in the country’s finances. The government has already said it will prioritize the poorest households, leaving rich and middle-income households to bear the brunt of the tax increases. One of the main focuses will be energy costs, with changes to the price guarantee announced in September by Mr Sunak’s predecessor, Liz Truss. Read more: Rishi Sunak rejects 3% defense spending pledge – but shows ‘record’ investment G20 is Rishi Sunak’s first big moment in world state – but this is not his real test The price guarantee meant a typical household would face energy bills of no more than £2,500 a year, but this could rise to as much as £3,100 from April – and even that would leave taxpayers with a hefty bill. There were also hints that Thursday’s autumn statement could include benefits and pensions rising in line with inflation – a move that would cost around £11bn. The triple lock on state pensions – which guarantees an increase in line with average earnings, inflation or 2.5%, whichever is higher – was part of the Conservative manifesto in 2019. But with inflation running above 10%, it’s getting more and more expensive. Read more: Ed Conway: UK has one foot in recession but it’s worth being careful with predictions in times of uncertainty Jeremy Hunt says everyone will have to pay higher taxes – but the richest will make bigger sacrifices Speaking to reporters accompanying him on his trip to the G20 summit in Bali, Mr Sunak said: “My record as chancellor shows that I care a lot about these pensioners, particularly when it comes to things like energy and heating, because they are particularly vulnerable in cold weather. “That’s why when I announced support earlier this year as chancellor, we made extra provision for pensioners to receive up to £300 with their winter fuel payments to help them tackle their energy bills over the winter. “So I’m someone who understands the particular challenge of retirees. “He will always be at the forefront of my mind.”
