There is no question that our country has faced some profound challenges over the past few years. From the pandemic and the consequences of our response to the ongoing conflict in Ukraine, these difficult times have demonstrated the importance of strengthening the UK’s public finances.
I know the cost of living has been difficult for many in Wycombe. As I travel around our town, I have been grateful to speak to many local people about this issue.
I understand these are trying times for many of us, and it is right that the Government has listened. Ministers have worked ceaselessly to ease the burden on working people while responsibly improving our public finances. This week, I am pleased to see many of these efforts come into effect.
On Monday, the National Living Wage for those ages 21 and over rose by £1.02 to £11.44 per hour. This is a £1,800 annual pay rise to a full-time worker on the National Living Wage.
This week, Local Housing Allowance has also been raised to the 30th percentile of local market rents. This will benefit 1.6 million low-income households around the country, who will be around £800 a year better off on average. I have been seized of this issue for some time, raising the issue with the Minister after discussing the LHA shortfall with Wycombe Homeless Connection. You can read more about that here:
I have spoken to many parents in our town who have made clear the challenges faced by families. This is why I am pleased to see the Government is cutting the High-Income Child Benefit Charge, putting up to £1,664 back into the pockets of hardworking families.
These tax cuts build on significant childcare reforms. From this month, eligible working parts will be able to access the first 15 hours of free childcare a week for their 2-year-olds. From September, this will expand into 15 hours each week for their 9-month-olds in September. In September 2025, all eligible parents will have access to 30 hours of funded childcare for children aged 9 months all the way until they start school.
From next Monday, the pension will be uprated in line with our Triple Lock by 8.5 per cent, an increase of £900.
On Saturday, the further cut in National Insurance will take effect. Tax cuts this month are placing £450 back into the pockets of the average worker on £35,400, saving them £900 alongside the Conservative Government’s tax cuts last year. I am also pleased to see the Government is committed to cutting the double tax on work, making work pay for 29 million working people across the country by saving the average nurse £1,053, the average police officer £1,270 and a junior doctor £1,508.
Finally, I was pleased to see the energy price cap fall on Monday by £238 to £1680 a year.
This has been a difficult time for many in Wycombe and across the UK. The Government has stuck to its plan and made the difficult choices necessary for a brighter future.
Since the beginning of 2023, the Government has been working on five priorities, three of them economic: to halve inflation, grow the economy, and reduce debt.
Although there is more to be done, we are making steady progress across all three. This has allowed the Government to cut taxes for 29 million people, uprate the state pension by £900 a year, support those on low incomes, increase the National Living Wage, and take steps to the Government’s long-term plan to end the unfair double tax on work.
