UK to raise wage floor 4% and shield pensioners in Budget

· Economy · United Kingdom

Chancellor of the Exchequer John Healey is poised to raise the UK's national living wage by about 4% in the October 28 Budget but will not close the pay gap with younger workers, amid concern that hiring costs are driving youth unemployment. He will also axe tariffs on staples such as marmalade and gherkins to give households "breathing space," and shield low-income pensioners from income tax as the flat-rate state pension rises in April. The government will scrap a controversial rule that punished unpaid carers with penalties amounting to thousands of pounds.

Why it matters：Britain's wage and tax choices will shape household incomes and youth employment as growth stays fragile.

Key points

  • The national living wage will rise about 4%.
  • Tariffs on some staples will be cut.
  • A carers' penalty rule will be scrapped.

Sources (original reporting)

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