The chancellor is expected to make a significant announcement in Wednesday’s budget
Chancellor Rachel Reeves is expected to announce that 13m pensioners will get an above-inflation rise to the state pension next April with those on the full rate of the new state pension set to receive a hike of more than £550.
The trail of the announcement comes ahead of her crucial budget on November 26. From next April the rate of the full new state pension is expected to increase to just over £240 a week in an increase worth more than £550 a year. That is an extra £120 compared to what it would have been if it had been uprated only by inflation.
The full basic state pension is expected to rise by around an extra £440 a year.For our free daily briefing on the biggest issues facing the nation, sign up to the Wales Matters newsletter here.
Ms Reeves said: “Whether it’s our commitment to the triple lock or to rebuilding our NHS to cut waiting lists we’re supporting pensioners to give them the security in retirement they deserve.
“At the budget this week I will set out how we will take the fair choices to deliver on the country’s priorities to cut NHS waiting lists, cut national debt, and cut the cost of living.”
The triple lock guarantees that the state pension increases annually by the highest of inflation, average earnings growth, or 2.5%.
As Ms Reeves tries to get both the country and her party back onside there are suggestions that other announcements will include reversing the two-child benefit cap and help with energy bills.
Writing in the Mirror and the Sunday Times this weekend the chancellor acknowledged that high prices “hit ordinary families most” and the economy “feels stuck” for too many.
“That’s why in my budget on Wednesday I will take action to grip the cost of living,” she said.
Some of the tax rises she is reported to be looking at include:
- Freezing income tax thresholds for an extra two years to 2030, bringing more people into higher tax bands as wages rise
- Making salary sacrifice schemes less generous, including those for pension contributions
- Bringing in higher tax on the most expensive properties in England including a surcharge on the highest-value houses
- A pay-per-mile scheme on electric cars to help fill the tax gap from petrol duty as more people opt for green vehicles
We’ll be bringing you all the budget news live on WalesOnline on Wednesday with the chancellor due to speak to the Commons from 12.30pm.
