Chancellor Jeremy Hunt to confirm toughening of benefits sanctions while raising living wage
Chancellor Jeremy Hunt will reiterate the government’s commitments to make benefits sanctions harsher in a speech today – while also committing to raising the national living wage above £11 an hour.
Mr Hunt‘s intervention comes around six weeks ahead of his autumn financial statement.
While not as tumultuous as his predecessor’s party conference speech last year – where Kwasi Kwarteng had to admit his party was U-turning on a key part of his mini-budget – Mr Hunt is still under pressure.
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Many voices within the Conservative Party want him to cut taxes, including cabinet ministers.
Speaking to Sky News’ Sunday Morning with Trevor Phillips, Levelling Up Secretary Michael Gove said he would “like to see the tax burden reduced by the next election”.
Mr Hunt on Saturday said the government was “not in a position to talk about tax cuts at all” – but all bets are off when it comes to party conferences.
The government has been eyeing welfare changes as a way to cut down on spending, and also encouraging people back into work in a bid to grow the economy.
The chancellor will address conference today
Mr Hunt will tell the party membership in Manchester: “Since the pandemic, things have being going in the wrong direction. Whilst companies struggle to find workers, around 100,000 people are leaving the labour force every year for a life on benefits.
“As part of that, we will look at the way the sanctions regime works. It is a fundamental matter of fairness. Those who won’t even look for work do not deserve the same benefits as people trying hard to do the right thing.”
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A party spokesman said: “To ensure work always pays, the chancellor will also confirm that he and Work and Pensions Secretary Mel Stride will look again at the benefit sanctions regime to make it harder for people to claim benefits while refusing to take active steps to move into work.
“Proposals will be set out in the upcoming autumn statement.”
Speaking last month, Mr Stride said that he was consulting on changes to the Work Capability Assessment, the test aimed at establishing how much a disability or illness limits someone’s ability to work.
Raising the living wage
On the national living wage, Mr Hunt will say the government is going to accept the Low Pay Commission’s recommendation to rise the baseline to at least £11 an hour from April 2024.
Resisting sizeable pay increases in the public sector has been part of the government’s strategy to keep spending and inflation under control
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Mr Hunt will say: “Today I want to complete another great Conservative reform, the National Living Wage.
“Since we introduced it, nearly two million people have been lifted from absolute poverty.
“That’s the Conservative way of improving the lives of working people. Boosting pay, cutting tax.
“But today, we go further with another great Conservative invention, the National Living Wage.
“We promised in our manifesto to raise the National Living Wage to two thirds of median income – ending low pay in this country.
“At the moment it is £10.42 an hour, and we are waiting for the Low Pay Commission to confirm its recommendation for next year.
“But I confirm today, whatever that recommendation, we will increase it next year to at least £11 an hour.”
Ahead of the speech, Prime Minister Rishi Sunak, said: “I’ve always made it clear that hard work should pay, and today we’re providing a well-earned pay rise to millions of people across the country.
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“This means a full-time worker will receive an increase of over £1,000 to their annual earnings, putting more money in the pockets of the lowest paid.
“We’re sending a clear message to hard-working taxpayers across the country; our Conservative government is on your side”.
‘Ban on mobile phones in classrooms’
Elsewhere, Education Secretary Gillian Keegan will also give her speech in the conference hall later, where she is expected to say she will ban mobile phones in classrooms.
Speaking to the Daily Mail, a government source said: “Gillian believes that mobile phones pose a serious challenge in terms of distraction, disruptive behaviour, and bullying.
“It is one of the biggest issues that children and teachers have to grapple with so she will set out a way forward to empower teachers to ban mobiles from classrooms.”
Many schools already ban pupils using phones, but Ms Keegan wants to outlaw them during lessons and break times.
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Starmer says ‘US is right’ about UK and Europe needing to take more responsibility for defence
Sir Keir Starmer has said the United States “is right” about the UK and Europe needing to take more responsibility for defence and security.
The prime minister, speaking at the Scottish Labour conference in Glasgow on Sunday, said he is clear Britain “will take a leading responsibility” in protecting the continent.
“Instability in Europe always washes up on our shores,” he said.
“And this is a generational moment. I’ve been saying for some time that we Europeans – including the United Kingdom – have to do more for our defence and security. The US is right about that.”
He added “we can’t cling to the comforts of the past” as it is “time to take responsibility for our security”.
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Donald Trump sparked an emergency meeting of European leaders this week after he said European NATO members should spend more on defence, while the US should spend less.
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Sir Keir has said he will set out a path for the UK to spend 2.5% of GDP on defence, up from the current 2.3%, but has not indicated when that will be.
It is believed he may announce the details when he visits Mr Trump in Washington DC on Thursday, bringing forward the announcement that was expected in the spring when a defence spending review is published.
The prime minister reiterated the UK will “play our role” if required in Ukraine following a peace agreement after he earlier this week said the UK would send troops to be part of a peacekeeping force.
Sir Keir will meet Donald Trump in the White House on Thursday. Pic: AP
However, his comments caused a row with Germany and Italy who said it was premature to commit to boots on the ground, although France agreed with the UK.
Sir Keir said: “As we enter a new phase in this conflict, we must now deepen our solidarity even further.”
He added: “There can be no discussion about Ukraine without Ukraine.
“And the people of Ukraine must have long-term security.”
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This week has seen US officials meet their Russian counterparts in Saudi Arabia to discuss Ukraine – which has been met with indignation by Ukrainian President Volodymyr Zelenskyy as none of his team were invited.
No Europeans were invited either, sparking concern the US is pandering to Vladimir Putin.
Sir Keir has promised Mr Zelenskyy he will make the case for safeguarding Ukraine’s sovereignty when he meets with Mr Trump, who has called the Ukrainian president a dictator.
Mr Trump also said Sir Keir and French President Emmanuel Macron, who will visit the White House too this week, “haven’t done anything” to end the war.
The prime minister has announced £200m for Grangemouth ahead of the closure of Scotland’s last oil refinery.
Sir Keir Starmer, speaking at the Scottish Labour conference on Sunday, said the cash would come from the National Wealth Fund for an “investment in Scotland’s industrial future”.
Grangemouth oil refinery, on the banks of the Firth of Forth, is set to cease operation this summer and transition into an import terminal, making 400 workers redundant.
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Sir Keir said: “We will grasp the opportunities at Grangemouth, work alongside partners to develop viable proposals, team up with business to get new industries off the ground and to attract private investors into the partnership we need.
“We will allocate £200m from the National Wealth Fund for investment in Grangemouth.”
The money comes on top of a £100m “growth plan” already in place for the area.
Scotland’s first minister, the SNP’s John Swinney, welcomed the announcement and said it is “important that the Scottish and UK governments work together on securing the future for the workforce”.
The plant will become an import terminal. Pic: Jane Barlow/PA
Sir Keir said the new investment will be a partnership with the private sector, and he is expecting three times the amount the government is putting in to come from private investors.
The prime minister said he believes the transition to clean energy is a “golden opportunity for Britain, especially for Scotland”, and is essential for national security as it “gets Putin’s boots off our throat”.
However, he said oil and gas are also “vital for our security” so will be “part of the future of Scotland for decades to come”.
As well as the investment in Grangemouth’s future, Sir Keir said every person made redundant will get 18 months full pay and a skills and training offer “backed up with up to £10m”.
Any business in Grangemouth that takes on those workers will get National Insurance relief, he also said.
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Petroineos, which owns Grangemouth, announced last September it was to close Grangemouth by this summer because it was unable to compete with sites in Asia, Africa and the Middle East.
The refinery is understood to have been losing about £395,000 a day when it made the announcement and was on course to lose about £153m this year.
The company said the decision would “safeguard fuel supply for Scotland” by converting the site into a terminal able to import petrol, diesel, aviation fuel and kerosene into Scotland.
However, it said that would only need a workforce of fewer than 100 employees.
Petroineos announced its intention to close the plant in November 2023 but union leaders had hoped it could remain open for longer to provide time for a green alternative to be established there.
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