Question to the HM Treasury:

To ask the Chancellor of the Exchequer, pursuant to the Answer of 5 November 2024 to Question 11832 on Living Wage, how many and what proportion of workers affected by the increase in the National Living Wage will become taxpayers in April 2025.

At Autumn Budget the Chancellor announced the National Living Wage will rise by 6.7% in April 2025 to £12.21 per hour, representing a pay rise to over 3 million workers. This pay boost is worth £1,400 a year for an eligible full-time worker.

The Government is protecting working people’s payslips by, not increasing the basic, higher or additional rates of income tax, or employee National Insurance contributions. It is also not extending the freeze on personal tax thresholds, allowing them to rise with inflation from April 2028.