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This week, the government highlighted its upcoming minimum wage increase, while Labour and the Tories clashed over economic performance and the Spring Statement set for next week.
Minimum Wage
The government’s minimum wage increase was praised by the Labour benches this week, with Andrew Pakes (MP for Peterborough) highlighting the pay boost for his constituents. Prime Minister Sir Keir Starmer criticised Kemi Badenoch, Leader of the Opposition, for opposing the minimum wage changes, observing that the Leader of the Opposition “thinks that the minimum wage is a burden, and that maternity pay is excessive. It is the same old Tories. They opposed the minimum wage in the first place; they have learnt absolutely nothing.”
The minimum wage, introduced in 1998 under the Blair administration, was last raised in 2023 to £10.18 for this age group. The wage rates vary depending on age, covering apprentices as well as those aged 16-17, 18-20, and 21. Currently, the minimum wage rates are £11.44 per hour for those aged 21 and over, £8.60 per hour for those ages 18-20, and £6.40 for under 18s and apprentices.
The national minimum wage is set to increase next month, with the government increasing minimum wage to £12.21 per hour for those aged 21 and over, £10.00 for those aged 18-20 and £7.55 for under 18s and apprentices. It is estimated that 1.9 million people are currently earning at or below the national minimum wage. While some argue that a minimum wage is a significant cost to businesses, others believe that raising it could enhance individuals’ spending power and benefit the broader economy.
Spring Statement
The major parties argued again over the upcoming Spring Statement. Kemi Badenoch, The Leader of the Opposition and Conservative party took aim at the government’s economic policy. Badenoch opened her questioning: “The Chancellor claimed that her Budget was ‘a once-in-a-Parliament reset’, so why are we having an emergency Budget next week?” The leader of the Tory party then questioned the “jobs tax” and the government’s commitment to “another freeze in income tax.”
The Prime Minister first responded to Badenoch to assert that the budget was not an emergency: “The Office for Budget Responsibility will present its numbers and there will be a spring statement next week.” Starmer also stated “We have record investment into this country and interest rates have been cut. The Leader of the Opposition talks about national insurance. We had to fill the £22 billion black hole that the Conservatives left. We have invested in the NHS, schools and public services.” Both sides of the house seem divided on the performance of the economy and what to expect from the budget.
The annual Spring Statement will be released on Wednesday 26th March 2025. Budgets are meant to be surrounded by secrecy, to protect any market sensitive information from being leaked. That being said, it will be difficult to know what is going to happen until Chancellor Rachel Reeves’ announcement.
Edited by Elizabeth Strassheim
Image: Front of Bench of Opposition by House of Commons via Flickr // CC BY 2.0
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