Chancellor Jeremy Hunt has reaffirmed the government’s commitment to intensify benefit sanctions while simultaneously pledging to raise the national living wage to surpass £11 an hour. Speaking at the Conservative Party conference in Manchester, Mr. Hunt outlined a multifaceted approach that includes freezing the expansion of the Civil Service and reducing staffing levels to pre-pandemic standards, aiming to save £1 billion.

In a speech focused on fiscal policy and social safety nets, Mr. Hunt emphasised the government’s dedication to creating an environment where there is both a climbable ladder and a robust safety net. He highlighted the importance of tax contribution for sustaining the safety net, asserting that it relies on people actively participating in the workforce.

Addressing concerns about individuals leaving the labor market for a life on benefits, Mr. Hunt revealed plans to replace the Work Capability Assessment and reevaluate the sanctions regime. He argued that fairness dictates a differentiation between those actively seeking employment and those unwilling to engage in job searches.

One significant announcement was the commitment to raise the national living wage, currently at £10.42 an hour, to a minimum of £11 an hour. Mr. Hunt emphasised that this would translate to a pay rise for nearly two million workers, asserting that a Conservative government supports those who work hard.

In a move aimed at fiscal prudence, Mr. Hunt proposed freezing the expansion of the civil service, citing an anticipated saving of £1 billion in the coming year. He acknowledged the need for modern working practices and improved IT but underscored the necessity for changes in the Treasury’s practices.

As he delved into the economic landscape post-Covid-19 and amidst energy crises, Mr. Hunt expressed concerns about rising public spending outpacing economic growth. He advocated for a more productive state rather than a larger one, emphasising the benefits of increasing public sector productivity.

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