THE REAL Living Wage has risen by a record 10% to £10.90 an hour for workers, but businesses must volunteer to pay the new increase.
The hourly rates are rising by £1 to £10.90 across the UK and by 90p to £11.95 in London.
It comes as interest rates have risen to their highest level in 14 years, the Bank of England has said, which will leave most Brits "£500 out of pocket".
The Bank of England raised rates again by 0.5 percentage points to a total 2.25% – the highest level of borrowing since 2008, confirming that the UK is already in recession.
The bleak outlook could see homeowners hit hard by the Bank of England's new base rate of interest to levels last seen in the financial crisis .
Read our live blog below for the latest updates….
- Louis Allwood
Credit score warning
Warning for Brits as many will have their credit scores crippled by the energy crisis, according to credit experts.
Three million households should not cancel their energy bill direct debits to protect their credit scores.
The research comes from Credit Karma, after more than three million Brits have said that they plan to cancel their energy direct debits in October.
Analysis of 40,000 households who missed a utility payment between March 2021 and May 2022 showed that 63% saw a negative impact on their credit score within three months of missing a single payment.
Your credit score can have a huge impact on you getting the best credit card, mortgage and loan deals.
- Joseph Gamp
Government to announce new measures in 9.30am fiscal statement
The Chancellor will announce a new range of measures in a fiscal statement announcement at 9.30am.
The Growth Plan bill is expected to include the cutting of stamp duty, a reveals of planned tax hikes and further tax cuts.
- Joseph Gamp
National insurance levy scrappage will help pay for social care says Kwarteng
Ahead of his so called mini-budget statement at 9.30am, Mr Kwarteng confirmed that he was cancelling the 1.25 percentage point increase imposed by Rishi Sunak when he was chancellor.
He said the move will help to pay for social care costs and to help deal with the NHS backlog.
Mr Kwarteng said he would also be scrapping the planned Health and Social Care Levy which was due to come into effect next April to replace the national insurance rise.
The Government tabled legislation in the Commons on Thursday to enact the tax changes.
- Louis Allwood
Home buyers to save thousands of pounds
Chancellor Kwasi Kwarteng’s is expected to announce plans to cut stamp duty in a bid to boost economic growth, according to reports.
By cutting the levy, it is hoped that it will encourage growth by allowing more people to move property and get more first-time buyers on the housing ladder.
Under the current system no stamp duty is paid on the first £125,000 of any property purchase. The threshold at which the duty is paid for first-time buyers is £300,000.
How much buyers pay depends on the price and type of property, including if it's residential use or non-residential or mixed-use.
An increase to the thresholds at which you pay the tax could save some buyers thousands of pounds.
- Louis Allwood
What is expected?
- Reversing National Insurance 1.25 percentage point rise from November 6
- Scrapping the planned rise in Corporation Tax from 19 to 25 per cent
- Cutting stamp duty, potentially by doubling the thresholds
- Cutting business taxes in 38 new investment zones
Cutting tax is crucial for growth, says Kwarteng
Speaking yesterday, chancellor Kawasi Kwarteng said: "Taxing our way to prosperity has never worked. To raise living standards for all, we need to be unapologetic about growing our economy.
"Cutting tax is crucial to this – and whether businesses reinvest freed-up cash into new machinery, lower prices on shop floors or increased staff wages, the reversal of the levy will help them grow, whilst also allowing the British public to keep more of what they earn."
HM Treasury said most employees will receive a cut to their national insurance contribution directly via their employer's payroll in their November pay.
However, it is expected some may be delayed to December or January.
Chancellor 'expects action' over interest rate rises
The Chancellor has warned that he expects the Bank of England to contain inflation by "forceful action" if nessecary
In a letter to Andrew Bailey, Kwasi Kwarteng reportedly said: "It is essential to businesses and households across the country that inflation is brought back to target, and I know and expect that the MPC will continue to take the forceful action necessary to achieve this and to ensure inflation expectations remain firmly anchored."
National Insurance reversal date
The increase in national insurance will be reversed from November 6.
Chancellor Kwasi Kwarteng confirmed the news ahead of today's so-called Growth Plan speech.
Tips on saving money
Samantha Gould, head of campaigns and financial adviser at pension provider NOW Pensions, offered tips to help with savings.
Since 2012, company employees started being auto-enrolled into workplace pensions.
It means a percentage of a worker’s monthly salary is taken away and put towards a retirement pot.
Your employer has to contribute a minimum amount as well, and the employee’s contribution, usually 5%, includes tax relief from the government.
Samantha said even though it could be tempting to opt out of yours for more money in the short-term, doing so would be a bad idea in the long-term.
“Workplace pensions are brilliant because it’s not just your own money but your employer is contributing as well,” she said.
“In terms of building up the value of a pot, it’s a lot more cost-effective and easier to build up significant amounts of money rather than if you took out a pension yourself.”
While the legal minimum employers have to contribute is 3%, some offer more than this if you’re willing to up your monthly contributions.
Of course, you should only do this after you’ve budgeted and know you have enough money coming in each month.
- Louis Allwood
Kwasi Kwarteng's mini-budget defended
Simon Clarke, the Levelling Up Secretary, has defended Kwasi Kwarteng's mini-budget today.
Speaking to Sky News he saidthat today's announcements are "not" a gamble.
He said: "It's about asserting that we want to get back to the trend growth this country enjoyed before the 2008 financial crisis."
- Louis Allwood
Tax cuts to be outlined today
Chancellor Kwasi Kwarteng will outline tax cuts and energy bills support during a mini-budget later today.
The government are calling today's mini-budget a "fiscal event" as the actual budget will take place later this year.
- Louis Allwood
'New era' to begin today
Kwasi Kwarteng will today deliver his 'Growth Plan' to boost the economy and make families better off within six weeks.
Promising a “new era” for Britain, this is likely to be the biggest tax cutting event since 1988.
- Henry Moore
Cut down on petrol use by making these changes
Petrol costs might be gradually falling, but they are still higher than usual.
So, here are three ways to cut your fuel consumption when driving:
- Accelerating gradually without over-revving
- Always driving on the highest possible gear
- Allowing your car to slow down naturally as your brake
Click here for more advice.
Cost of hot tubs could skyrocket, report claims
The cost of running a hot tub could be on the rise, according to water company Ofwat.
As the cost of living continues to rise, providers are looking for new ways to calculate bills.
One suggestion is increasing the bills of Brits who own hot tubs.
Commenting on the plans, Ofwat boss David Black said: “We are all very aware of the impact of the rising cost of living and we want to see the water sector become more active, assertive and inventive to support customers who are struggling to make ends meet.
“Now more than ever, it is time for water companies to show they get and can respond to the needs of their customers. Bills are a huge concern to customers, and we need to see radical fresh thinking from companies.”
Click here to read more.
How will the NI cut affect you?
Today, the Chancellor is expected to announce a cut to National Insurance.
But how will your pay be affected?
For more information about this morning's “mini budget” check out our live blog dedicated to the announcement.
- Henry Moore
FREE debt advice for struggling Brits
There are various services available as costs mount.
Here are some free services that may be of use:
- Money Helper – 0800 138 7777
- Citizens Advice – 0808 800 9060
- StepChange – 0800 138 1111
- National Debtline – 0808 808 4000
390,000 workers to receive pay rise
Almost 400,000 Brits on the real living wage will see their hourly pay increase by 10%.
Workers on the real living wage will see their hourly pay hiked from £9.90 to £10.90 to help with the rising cost of living.
Those in London will see their hourly rate rise from £11.05 to £11.95.
Check if your employer is part of the Real Living Wage scheme here.
Click here for more details.
Marks & Spencer to give workers their second pay rise this year
The high street shop is set to give its employees another pay rise before the end of the year, as it looks to help them through the cost of living crisis.
Workers will see their hourly pay increased to a minimum of £10.20 from October 1.
This follows a pay rise in April and could see workers earn an extra £100 this month.
Stuart Machin, chief executive at M&S said: “Whether you’re running a home or running a business, everyone across the country is feeling the pressure of rising costs.
“We want to do what we can to help ease some of that strain; that’s why we have invested in price to deliver better value for our customers and, why we are investing in our colleague base pay for the second time this year.”
Click here for more details.
Another blow for Brits as cost of packed lunches skyrockets
As the cost of living continues to rise, the price of packed lunches has seen a sharp increase.
From the price of cheese increasing by over 100% in the last year, to crisps seeing a massive rise in price, the cost of a packed lunch has risen drastically.
Overall, the cost of standard packed lunch ingredients has gone from £6.99 to £11.87.
Click here for more details.
Motorists rejoice as the price of petrol falls
In good news for motorists across the nation, Petrol prices have dropped below 166p per litre.
According to the Department for Business, Energy and Industrial Strategy, petrol prices were at 165p per litre on Monday, a dramatic drop from previous months.
These mark the lowest prices seen in the UK since May.
AA fuel price spokesman Luke Bosdet said: “Although the fall in pump prices has slowed in recent weeks, they continue to trickle down steadily.
“This was to be expected as the end of the US summer motoring season eases the pressure on gasoline demand and therefore reduces the wholesale price of petrol in this country.
“At UK street level, petrol prices around 155p a litre are beginning to appear again.”
Click here to read more
British Gas confirms customers on fixed tariffs won’t be hit with major loophole
The British energy giant has confirmed that its customers won’t fall victim to a loophole in the Energy Price Guarantee.
This loophole would see those on fixed tariffs pay more than the newly-introduced price cap.
A spokesperson for the firm said: “We think it’s the right thing to do to move people who are on fixed tariffs that would benefit from the Governments Energy Price Guarantee automatically.
“As a responsible supplier we need to make things as simple as possible for our customers.”
Click here to read more.
- Henry Moore
Tips on saving money
Samantha Gould, head of campaigns and financial adviser at pension provider NOW Pensions, offered tips to help with savings.
Since 2012, company employees started being auto-enrolled into workplace pensions.
It means a percentage of a worker’s monthly salary is taken away and put towards a retirement pot.
Your employer has to contribute a minimum amount as well, and the employee’s contribution, usually 5%, includes tax relief from the government.
Samantha said even though it could be tempting to opt out of yours for more money in the short-term, doing so would be a bad idea in the long-term.
“Workplace pensions are brilliant because it’s not just your own money but your employer is contributing as well,” she said.
“In terms of building up the value of a pot, it’s a lot more cost-effective and easier to build up significant amounts of money rather than if you took out a pension yourself.”
While the legal minimum employers have to contribute is 3%, some offer more than this if you’re willing to up your monthly contributions.
Of course, you should only do this after you’ve budgeted and know you have enough money coming in each month.
- Lauren Cole-Lomas
FREE debt advice for struggling Brits
There are various services available as costs mount.
Here are some free services that may be of use:
- Money Helper – 0800 138 7777
- Citizens Advice – 0808 800 9060
- StepChange – 0800 138 1111
- National Debtline – 0808 808 4000
Pensioners could be forced to pay income tax next year
It has been reported that more than half a million pensioners could be forced to pay income tax.
Retirees could lose money in next year's 10 per cent triple lock state pension pay rise. This would result in pay cuts.
The state pension rose 3.1 per cent this year, and income tax thresholds were frozen, so around 390,000 had to pay taxes.
If a larger pension is increased next year, this number could rise by another 500,000.
Pension triple lock MAY return
The policy could be announced tomorrow as part of the mini budget plans.
Professor Joe Nellis, Professor of Global Economy at Cranfield School of Management, told Express.co.uk that should the triple-lock be reintroduced, "the biggest increase in state pensions in decades" will be seen.
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