The national living wage will rise to £11.44 per hour from April.
Chancellor Jeremy Hunt has announced he is accepting the recommendation from the Low Pay Commission – an increase of £1.02 from the current rate of £10.42.
According to the Treasury, it is the largest ever cash increase to the rate – and is equivalent to £1,800 a year for those on the lowest income.
Until now, the national living wage has only been in force for Britons over the age of 23 – but from next year, it will apply to 21 and 22-year-olds for the first time.
The changes are expected to impact about two million people.
The minimum wage rate is also going up, as is the lowest legal pay for apprentices.
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Those aged 18 to 20 will get at least £8.60 an hour from April – a bump of £1.11.
For those 16 and 17, and apprentices, the minimum pay will be £6.40 – a rise of £1.12 on last year.
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Mr Hunt said: “Next April, all full-time workers on the national living wage will get a pay rise of over £1,800 a year. That will end low pay in this country, delivering on our manifesto promise.
“The national living wage has helped halve the number of people on low pay since 2010, making sure work always pays.”
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Laura Trott, the chief secretary to the Treasury, would not be drawn on whether measures like tax cuts being offered by the government was being done due to the Tories languishing in the polls.
She said Mr Hunt and Mr Sunak “have made some really difficult decision in the national interest” to try and get inflation down.
The national living wage was introduced in 2016. The Treasury claims that, by raising the living wage to two-thirds of average earnings, they have ended low hourly pay.
A Treasury spokesperson said: “Since 2010, the proportion of workers on low hourly pay has more than halved from 21.3% to 8.9%, supported by increases to the national living wage.
“Personal tax thresholds have been doubled, meaning a working person can now earn £1,000 a month tax-free for the first time.”
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The announcement comes ahead of Wednesday’s autumn statement, where Mr Hunt will update the UK on the state of country’s economy.
Nye Cominetti, the principal economist of the Resolution Foundation thinktank, said: “The more than £1 an hour increase in the national living wage next year is huge – the third-biggest rise ever in both cash and real terms. At least 1.7 million workers across Britain will benefit from this latest rise, and many more will see their wages boosted indirectly.
Can the chancellor lift the gloom? Watch live coverage on Sky News of the autumn statement from 11am on Wednesday
Superintendent Jen Appleford, from Avon and Somerset Police, said the community was in shock and Aria’s family were being supported by police.
“It is impossible to adequately describe how traumatic the past 36 hours have been for them and we’d like to reiterate in the strongest possible terms their request for privacy,” she said.
Supt Appleford said police were working with local schools and other agencies to make sure support is available.
The Duke of Marlborough, formerly known as Jamie Blandford, has been charged with intentional strangulation.
Charles James Spencer-Churchill, a relative of Sir Winston Churchill and Diana, Princess of Wales, is accused of three offences between November 2022 and May 2024, Thames Valley Police said.
The 70-year-old has been summonsed to appear at Oxford Magistrates’ Court on Thursday, following his arrest in May last year.
The three charges of non-fatal intentional strangulation are alleged to have taken place in Woodstock, Oxfordshire, against the same person.
Spencer-Churchill, known to his family as Jamie, is the 12th Duke of Marlborough and a member of one of Britain’s most aristocratic families.
He is well known to have battled with drug addiction in the past.
Spencer-Churchill inherited his dukedom in 2014, following the death of his father, the 11th Duke of Marlborough.
Prior to this, the twice-married Spencer-Churchill was the Marquess of Blandford, and also known as Jamie Blandford.
His ancestral family home is Sir Winston’s birthplace, the 300-year-old Blenheim Palace in Woodstock.
But the duke does not own the 18th century baroque palace – and has no role in the running of the residence and vast estate.
The palace is a Unesco World Heritage Site and a popular visitor attraction with parklands designed by “Capability” Brown.
In 1994, the late duke brought legal action to ensure his son and heir would not be able to take control of the family seat.
Blenheim is owned and managed by the Blenheim Palace Heritage Foundation.
A spokesperson for the foundation said: “Blenheim Palace Heritage Foundation is aware legal proceedings have been brought against the Duke of Marlborough.
“The foundation is unable to comment on the charges, which relate to the duke’s personal conduct and private life, and which are subject to live, criminal proceedings.
“The foundation is not owned or managed by the Duke of Marlborough, but by independent entities run by boards of trustees.”
The King hosted a reception at Blenheim Palace for European leaders in July last year, and the Queen, then the Duchess of Cornwall, joined Spencer-Churchill for the reveal of a bust of Sir Winston in the Blenheim grounds in 2015.
The palace was also the scene of the theft of a £4.75m golden toilet in 2019 after thieves smashed their way into the palace during a heist.
The duke’s representatives have been approached for comment.
We’re estimated to consume 8.2kg each every year, a good chunk of it at Christmas, but the cost of that everyday luxury habit has been rising fast.
Whitakers have been making chocolate in Skipton in North Yorkshire for 135 years, but they have never experienced price pressures as extreme as those in the last five.
“We buy liquid chocolate and since 2023, the price of our chocolate has doubled,” explains William Whitaker, the real-life Willy Wonka and the fourth generation of the family to run the business.
Image: William Whitaker, managing director of the company
“It could have been worse. If we hadn’t been contracted [with a supplier], it would have trebled.
“That represents a £5,000 per-tonne increase, and we use a thousand tonnes a year. And we only sell £12-£13m of product, so it’s a massive effect.”
Whitakers makes 10 million pieces of chocolate a week in a factory on the much-expanded site of the original bakery where the business began.
Automated production lines snake through the site moulding, cutting, cooling, coating and wrapping a relentless procession of fondants, cremes, crisps and pure chocolate products for customers, including own-brand retail, supermarkets, and the catering trade.
Steepest inflation in the business
All of them have faced price increases as Whitakers has grappled with some of the steepest inflation in the food business.
Cocoa prices have soared in the last two years, largely because of a succession of poor cocoa harvests in West Africa, where Ghana and the Ivory Coast produce around two-thirds of global supply.
A combination of drought and crop disease cut global output by around 14% last year, pushing consumer prices in the other direction, with chocolate inflation passing 17% in the UK in October.
Skimpflation and shrinkflation
Some major brands have responded by cutting the chocolate content of products – “skimpflation” – or charging more for less – “shrinkflation”.
Household-name brands including Penguin and Club have cut the cocoa and milk solid content so far they can no longer be classified as chocolate, and are marketed instead as “chocolate-flavour”.
Whitakers have stuck to their recipes and product sizes, choosing to pass price increases on to customers while adapting products to the new market conditions.
“Not only are major brands putting up prices over 20%, sometimes 40%, they’ve also reduced the size of their pieces and sometimes the ingredients,” says William Whitaker.
“We haven’t done any of that. We knew that long-term, the market will fall again, and that happier days will return.
“We’ve introduced new products where we’ve used chocolate as a coating rather than a solid chocolate because the centre, which is sugar-based, is cheaper than the chocolate.
“We’ve got a big product range of fondant creams, and others like gingers and Brazil nuts, where we’re using that chocolate as a coating.”
Image: The costs are adding up
A deluge of price rises
Brazil nuts have enjoyed their own spike in price, more than doubling to £15,000 a tonne at one stage.
On top of commodity prices determined by markets beyond their control, Whitakers face the same inflationary pressures as other UK businesses.
“We’ve had the minimum wage increasing every year, we had the national insurance rise last year, and sort of hidden a little bit in this budget is a business rate increase.
“This is a small business, we turn over £12m, but our rates will go up nearly £100,000 next year before any other costs.
“If you add up all the cocoa and all the other cost increases in 2024 and 2025, it’s nearly £3m of cost increases we’ve had to bear. Some of that is returning to a little normality. It does test the relevance of what you do.”