Tag: UK Government

UK and U.S. to clamp down harder on the trade of Russian metals

  • Russian metal producers blocked from profits from the London Metal Exchange and the Chicago Mercantile Exchange, reducing a crucial source of revenue for the Kremlin
  • Today’s action brings the world’s two largest metal exchanges into the scope of existing bans
  • Joint UK and U.S. action builds on ban of metal imports, targeting $40 billion of Russian exports of aluminium, copper and nickel

The UK and the U.S. have together announced joint action to clamp down harder on prohibited Russian metal exports, by today bringing the world’s two largest metal exchanges into the scope of the existing bans.

The London Metal Exchange (LME) and the Chicago Mercantile Exchange (CME) will no longer trade new aluminium, copper and nickel produced by Russia.

Metals are Russia’s largest export commodity after energy, though their value has been decreasing since Russia’s invasion of Ukraine. In 2022 they were $25 billion, dropping to $15 billion in 2023 due to the efforts of the G7 and allies to curtail the market.

Today’s action will go further to constrain Russia’s ability to make money from its shrinking metals exports, dealing another blow to President Vladimir Putin’s funding for his illegal war in Ukraine.

Jeremy Hunt, Chancellor of the Exchequer, said: “Disabling Putin’s capacity to wage his illegal war in Ukraine is better achieved when we act alongside our allies.

“Thanks to Britain’s leadership in this area, our decisive action with the U.S. to jointly ban Russian metals from the two largest exchanges will prevent the Kremlin funnelling more cash into its war machine.”

Janet L. Yellen, U.S. Secretary of the Treasury, said: “Our new prohibitions on key metals, in coordination with our partners in the United Kingdom, will continue to target the revenue Russia can earn to continue its brutal war against Ukraine.

“By taking this action in a targeted and responsible manner, we will reduce Russia’s earnings while protecting our partners and allies from unwanted spillover effects.”

The Prime Minister first announced the intention to act on banning Russian metals in May 2023. UK legislation to directly ban imports of Russian metals, including aluminium, copper and nickel was introduced in December. Separately, the U.S. put in place tariffs on various Russian metal imports.

Together, the UK and the U.S. have today gone one step further and brought both metal exchanges into the scope of these measures – reinforcing a shared commitment to constrain Russia and support Ukraine. This follows a dialogue between the two countries to maximise the impact of the policy, which is a technically complex measure requiring time to work through the details to ensure its effectiveness and minimise the risk of market disruption.

Metal exchanges provide a central role in facilitating the trading of industrial metals around the globe. The London Metal Exchange and Chicago Mercantile Exchange both have warehouses all over the world. Together, they are the world’s two largest metal exchanges and set global benchmark prices for the trade of base metals.

Both the UK and U.S. measures will exempt the existing stock of Russian metal on these global exchanges so they can still be traded and withdrawn. This is to minimise the risk to market stability.

Today’s announcement to strengthen the UK’s existing ban on Russian metals builds on ongoing work to support Ukraine. Since Putin’s full-scale invasion of Ukraine, the UK has introduced the largest and most severe package of sanctions ever imposed on any major economy.

Over 2,000 individuals and entities have now been sanctioned, and it is estimated that without sanctions, Russia would have over $400 billion more to fund its war – which could be enough to do so for an additional four years. The UK has also provided almost £12 billion in military, humanitarian and economic support to Ukraine and has often been the first mover on vital lethal aid.

Sanctions Minister Anne-Marie Trevelyan said: “Today’s action ratches up economic pressure on Putin, further depriving him of the key resources and revenue streams he needs to fund his illegal war in Ukraine.

“We have now imposed extensive trade sanctions on Russian-origin oil, gas, gold, diamonds, iron, steel, and base metals, dealing a heavy blow to Putin’s war economy. But we must continue to work with our allies to further tighten the screws on the Kremlin.”

Minister for Trade Policy Greg Hands said: “The UK has already imposed the most severe package of bans that we’ve ever seen on a major economy, including on Russian metals which is Russia’s largest export commodity after oil and gas.

“Now, we’re going even further. By strengthening our sanctions on Russian metals, alongside the U.S., we will reduce Russian revenue which it uses to fund Putin’s war machine.”

First Minister’s concerns over UK decision to continue to arm Israel

Noting that the Prime Minister did not agree to his call to end the license of arms exports to Israel, the First Minister has written to Lord Ahmad to warn that the UK Government is in danger of being complicit in the killing of innocent civilians.

The full text of the letter: UK arms sales to Israel: letter to Lord Ahmad:

Dear Lord Ahmad,

Thank you for your letter of 8 April replying to mine to the Prime Minister of 23 February and 3 April.

I welcome the UK Government’s stated commitment to International Humanitarian Law, our diplomats’ contribution to finally achieving a UN Security Council Resolution, and the UK’s wider efforts to bring an end to the tragedy befalling the people of the Middle East.

I share with you the grief at the killing of three British aid workers, along with every other innocent man, woman and child killed in Gaza and Israel since Hamas’s terrorist attacks of 7 October and Israel’s response, which has gone far beyond any legitimate response.

In spite of everything contained in your comprehensive reply, I note that you have not agreed to my call to end the license of arms exports to Israel, which means that the UK will continue to arm Israel’s war in Gaza. A war that has left tens of thousands dead, the majority reported to be women and children.

As I said in my letter of 3 April, by continuing to arm Israel, the United Kingdom Government is in danger of being complicit in the killing of innocent civilians.

I find it difficult to comprehend that this continues to be the United Kingdom’s position against the backdrop of the ICJ ruling; UN Security Council, General Assembly and Human Rights Council Resolutions; countless UN officials’ statements about the catastrophic humanitarian situation in Gaza; and the recent open letter signed by over 600 legal professionals warning of potential UK complicity in grave breaches of international law, including violations of the Genocide Convention.

If this, alongside the killing of British nationals among at least 35,000 dead – the majority of whom are innocent women and children – is insufficient to change your policy, what more will it take?

‘To the shoplifters and those abusing shopworkers, enough is enough’

Prime Minister launches retail crime crackdown

Serial or abusive shoplifters will face tougher punishments as the Prime Minister sets out tough new action to crack down on retail crime and protect UK highstreets.

Assaulting a retail worker will be made a standalone criminal offence in England, sending a clear message that there will be tough consequences for this unacceptable behaviour. 

Perpetrators could be sent to prison for up to six months, receive an unlimited fine and be banned from going back to the shop where they committed their crimes, with Criminal Behaviour Orders barring them visiting specific premises. 

Breaching an order is also a criminal offence and carries a five-year maximum prison sentence. For the most serious cases of assault, such as causing grievous bodily harm with intent, offenders could face a life sentence.

The move to create the new offence follows longstanding campaigning on this issue from Matt Vickers MP, and some of the biggest retailers, calling for more action to better protect their staff. 

The UK government is also stepping up action to clamp down on offenders who repeatedly target the country’s high streets, with serial offenders forced to wear tags to track their movements. 

These tags will be a constant and physical reminder to offenders that the Probation Service can find out where they have been and when, and that they risk being sent to prison if they refuse to obey the rules. Under an amendment to the Criminal Justice Bill, if an offender is found guilty of assaulting staff three times, or is sentenced for shoplifting on three separate occasions, they should be made to wear a tag as part of any community order.

Ahead of this legislation coming in, the UK government will partner with a police force to pilot a bespoke package of community sentencing measures which can be used by judges to tackle high levels of shoplifting, sending a clear message that repeat criminality will not be tolerated.

The government is also ramping up the use of facial recognition technology to help catch perpetrators and prevent shoplifting in the first place. Backed by a £55.5m investment over the next four years, the police will be able to further roll this new state of the art technology.

This will include £4m for bespoke mobile units that can be deployed to high streets across the country with live facial recognition used in crowded areas to identify people wanted by the police – including repeat shoplifters.

The mobile units will take live footage of crowds in towns and on highstreets, comparing images to specific people wanted by the police or banned from that location. Police in the area will then be alerted so they can track down these offenders.  

Prime Minister Rishi Sunak said: “Since 2010, violent and neighbourhood crime in England and Wales has fallen dramatically, showing our plan to keep our streets safe is working. Yet shoplifting and violence and abuse towards retail workers continues to rise.

“I am sending a message to those criminals – whether they are serious organised criminal gangs, repeat offenders or opportunistic thieves – who think they can get away with stealing from these local businesses or abusing shopworkers, enough is enough.

“Our local shops are the lifeblood of our communities, and they must be free to trade without the threat of crime or abuse.”

The action set out today builds on the successes already through the police’s Retail Crime Action Plan, which was commissioned by the Crime and Policing Minister, Chris Philp last year.

This included a range of measures, such as a police commitment to prioritise urgently attending the scene of shop theft involving violence against a shop worker, where security guards have detained an offender or where attendance is needed to secure evidence, which is showing signs of progress.

Home Secretary James Cleverly said: “There is quite simply no excuse for threatening behaviour or stealing – which can run other people’s livelihoods into the ground, while being traumatic for workers. 

“To turn a blind eye to retail crime shakes the foundations of law and order which protect our society and that is unacceptable. We are enhancing our plan and doubling down on the zero-tolerance approach needed to fight back. 

“The number of offenders being charged for these crimes is increasing and while I want to see more people face consequences for their actions, our plan is designed to help put a stop to these crimes happening in the first place.”

The government has driven forward significant efforts to tackle retail crime in the past year, bringing together policing and business to commit to smarter, more joined up working to reduce criminal behaviour and rebuild public confidence in the police response when it does occur. 

Crime and Policing Minister Chris Philp said: “Sadly if you speak to anyone working in retail, they will tell you of the verbal abuse and sometimes violent assaults they’ve been victims of, simply for trying to do their job. 

“In no other work place would this be accepted. I have been driving forward action to improve the police response to retail crime since I became Policing Minister, because nothing less than a zero-tolerance approach will do.

“That’s why today we’re sending a clear message to criminals that enough is enough bringing forward further measures to protect retail workers and crack down on those who continuously disregard the law.”

A specialist new police team set up last year is building intelligence on organised retail crime gangs funded through ‘Pegasus’, a first-of-its-kind business and policing partnership backed by 14 of the UK’s biggest retailers, National Business Crime Solutions and the Home Office, launched to radically improve the way retailers are able to share intelligence with police to identify more offenders. The unit forms part of Opal, the national police intelligence unit for serious organised acquisitive crime.   

Where CCTV or other digital images are secured, police are committed to running this through the Police National Database, as standard, to aid efforts to identify prolific offenders or potentially dangerous individuals. This builds on the pledge by police forces across England and Wales that they will follow up on all lines of enquiry, where there is a reasonable chance it could lead them to catching a perpetrator and solving a crime.

All police forces across England and Wales made another significant commitment last year to prioritise police attendance at the scene of a retail crime incident where violence has been used towards shop staff, where an offender has been detained by store security, or where evidence needs to be secured and can only be done by police personnel.

Paul Gerrard, Campaigns and Public Affairs Director of The Co-op Group, said: “The Co-op sees every day the violence and threats our colleagues, like other retail workers, face as they serve the communities they live in.

“We have long called for a standalone offence of attacking or abusing a shopworker and so we very much welcome the Government’s announcement today.

“The Co-op will redouble our work with police forces but these measures will undoubtedly, when implemented, keep our shopworkers safer, protect the shops they work in and help the communities both serve.”

Helen Dickinson, Chief Executive of the British Retail Consortium, said: “After relentless campaigning for a specific offence for assaulting retail workers, the voices of the three million people working in retail are finally being heard.

“The impact of retail violence has steadily worsened, with people facing racial abuse, sexual harassment, threatening behaviour, physical assault and threats with weapons, often linked to organised crime. Victims are ordinary hardworking people – teenagers taking on their first job, carers looking for part-time work, parents working around childcare.

“This announcement sends a clear message that abusive behaviour will not be tolerated and it is vital the police use this new legislation to step up their response to incidents. Together, we must stamp out this scourge in crime that has been sweeping the nation and ensure retail workers are given the vital protections they deserve.

Sharon White, Chairman of the John Lewis Partnership, said: “Retail crime is never victimless – it costs retailers over £1 billion every year and can have a huge impact on the shop workers involved. 

“We’ve long called for violence towards retail workers to be recognised as a standalone offence so welcome this announcement, which sends a clear message that abuse will never be tolerated. It will help deter acts of aggression, and allow police to drive prosecutions should instances escalate.”

UK participates in largest international airdrop into Gaza

BUT CONTINUES TO SUPPLY ARMS TO ISRAEL

The Royal Air Force participated in a large-scale international aid airdrop into Gaza yesterday to coincide with Eid al-Fitr, marking the end of Ramadan.

Collectively delivering hundreds of tonnes of aid, this was the largest airdrop of aid into Gaza on a single day and the culmination of careful planning alongside international partners to ensure the complex mission could be conducted safely and effectively. 

Led by the Jordanian Armed Forces, the international operation saw 9 nations* and 14 aircraft drop essential aid.

An RAF A400M flew this morning from Amman, Jordan to airdrop over 10 tonnes of aid, including ready-to-eat meals, water and rice, along the northern coastline of Gaza. The flight took around an hour with other nations’ aircraft dropping aid throughout the course of the day.

The A400M Atlas and crew are based at RAF Brize Norton in Oxfordshire with both RAF and British Army personnel supporting the operation in Jordan. Over the last two weeks they have dropped over 53 tonnes of aid on six flights.

Defence Secretary Grant Shapps said: The prospect of famine in Gaza is real and today’s international airdrop will provide life-saving food supplies for civilians.

“This is the sixth RAF airdrop in recent weeks, delivering over 53 tonnes of aid, including water, flour and baby formula.

“After six months of war in Gaza, the toll on civilians continues to grow. We continue to stand by Israel’s right to defeat the threat from Hamas terrorists, who have failed the people of Gaza and hide behind civilians. This terrible conflict must end. The hostages must be released and the aid must flood in.”

Yesterday’s international airdrop is part of UK efforts to provide vital humanitarian assistance to the people of Gaza and follows the announcement of a package of military and civilian support to set up a maritime aid corridor to Gaza. This includes the deployment of a Royal Navy ship to the Eastern Mediterranean as well as up to £9.7 million for aid deliveries.

The maritime corridor initiative will see tens of thousands of tonnes of aid pre-screened in Cyprus and delivered directly to Gaza, via a new US temporary pier being constructed off the coast or via Ashdod Port, which Israel has now agreed to open.

The UK is also focused on ensuring more aid can enter Gaza by land, and deliveries will be scaled up with the opening of the Erez crossing. In partnership with the World Food Programme, the UK’s largest delivery of aid – more than 2,000 tonnes of food aid – crossed the border on 13 March.

Foreign Secretary David Cameron said: “Led by our Jordanian partners, we have joined nations around the world to mark the end of Ramadan by getting life-saving aid into Gaza. Thousands of people in desperate need will benefit from this united effort.

“The UK remains ready to play its part in getting supplies in by land, air and sea, but the people of Gaza need more.

“We continue to push Israel as hard as we can to get more aid across the border and delivered throughout the region. Words must turn into action – this is essential to avoid an even more severe humanitarian crisis.”

Sunday marked 6 months since the devastating October 7 terrorist attacks, and almost a week since British aid workers were killed trying to get life-saving food to those in need.

The UK continues to call for an immediate humanitarian pause leading to a sustainable ceasefire, as the fastest way to get hostages safely home and more aid in.

Foreign Secretary to bolster support for Ukraine in visit to Washington DC

The Foreign Secretary will travel to Washington DC to urge US partners to unlock additional funding for Ukraine

  • David Cameron visits Washington DC to reaffirm the joint UK-US commitment to support Ukraine, which remains vital for US and European security.   
  • In discussions with Republican and Democratic Congressional leaders, he will call for urgent further support for Ukraine.   
  • He will meet US Secretary of State Antony Blinken and other senior US Government figures, reinforcing our steadfast partnership to defend freedom and democracy around the world as NATO allies.   

The Foreign Secretary will travel to Washington DC today (Tuesday 9th April) to urge US partners to unlock additional funding for Ukraine, giving them the tools they need to win its war with Russia.    

He will hold talks with US Secretary of State Antony Blinken on the UK’s continued support for Ukraine against Russian aggression which aims to redraw European borders by force. He will engage with key figures across Congress to call for them to change the narrative on Ukraine this year and provide the extra $60bn (over £47.5bn) in supplementary funding that’s going through Congress.

Over $184bn (over £145bn) has already been committed to Ukraine by European nations including over $15bn (nearly £12bn) from the UK, in addition to the nearly $74bn (nearly £59bn) already committed by the US – which is making a huge difference on the battlefields of Ukraine and the waters of the Black Sea. Ukraine has proven time and time again that with the right tools it can succeed.

The Foreign Secretary will reassert the importance of stepping up economic pressure on Russia now and continuing to give Ukraine the military and humanitarian support it needs to hold the line this year and go on the offensive in 2025.  

David Cameron will highlight how Europe and the US are united in their support for Ukraine, with European countries providing more than half of the total support. He will emphasise that nothing can match the pace and scale of US support which remains “the key stone in the arch” in the fight for freedom, democracy and the right of free countries to choose their own future.  

The Foreign Secretary, David Cameron said: “Success for Ukraine and failure for Putin are vital for American and European security.

“This will show that borders matter, that aggression doesn’t pay and that countries like Ukraine are free to choose their own future.

“The alternative would only encourage Putin in further attempts to re-draw European borders by force, and would be heard clearly in Beijing, Tehran and North Korea.

“US support for Ukraine has massively degraded the military capacity of a common adversary, Russia has lost half of its pre-invasion land combat power, and a quarter of its original Black Sea fleet, while creating jobs at home and strengthening the Western alliance and NATO.”

Two years on from Russia’s illegal invasion, it’s more important than ever that as NATO allies, the UK and US continue to defend its shared values, including by upholding Euro-Atlantic security. The visit will build on the strong ties between the US and the UK and our shared commitment to defending freedom and democracy around the world.    

While Ukraine continues to make gains against Russia, they are increasingly being overmatched by Russian artillery on the battlefield, underlining the importance of agreeing further US support.   

Talks will also focus on the Middle East, including the path to a sustainable ceasefire and the delivery of greater quantities of humanitarian aid in Gaza. Six months on from the 7 October attacks, the UK and US have stood united in their support for Israel who suffered the worst terror attack in its history at the hands of Hamas and have been clear in Israel’s right to self-defence in accordance with international law.  

The Foreign Secretary will continue to push for a full, urgent, and transparent investigation into the terrible events in Gaza last week, which saw three British aid workers lose their lives.

He will underline that the deaths of World Central Kitchen humanitarian workers are completely unacceptable and that major changes need to be made to ensure the safety of aid workers on the ground.  

Alongside the US, the UK and other partners recently announced plans for the opening of a maritime route, which will see aid delivered by sea to a new temporary US military pier in Gaza, through a maritime corridor from Cyprus. Partners including the United Nations, Cyprus, European Commission, the UAE, Qatar, Germany, Greece, Italy and The Netherlands, have joined the UK and the US in the creation of the route.  

The Foreign Secretary also will reinforce UK support for the Kenyan-led Multinational Security Support Mission (MSS) in Haiti by announcing a £5m contribution to its deployment.

The MSS, working with the Haitian National Police, will help to tackle gang-related violence which is destabilising the country, worsening the humanitarian situation and causing daily pain and suffering to the people of Haiti.

He will emphasise that a Haitian-led political solution is the only way to tackle this insecurity head on and long-term.    

UK to boost aid support for Gaza

UK Government announces new package of military and civilian support to set up a maritime aid corridor to Gaza

The UK Government is today announcing a package of military and civilian support to set up a maritime aid corridor to Gaza, including the deployment of a Royal Navy ship to join the life-saving mission in the Eastern Mediterranean.  

The ship, alongside new UK aid and British expertise, will support the establishment of an international humanitarian maritime corridor from Cyprus to Gaza, supported by many of our partner governments and the UN, and is expected to be operational in early May.

As well as the Royal Navy ship from the Ministry of Defence , the FCDO is also committing up to £9.7 million for aid deliveries; logistical expertise and equipment support to the corridor, such as forklift trucks and storage units; and expertise, to maximise the levels of aid reaching those people who desperately need it. 

Today marks six months since the devastating October 7 terrorist attacks, and almost a week since British aid workers were killed trying to get life-saving food to those in need. The UK continues to call for an immediate humanitarian pause leading to a sustainable ceasefire, as the fastest way to get hostages safely home and more aid in.

In the meantime, the UK Government is doing everything possible to get more aid into Gaza by land, air and sea. In recent weeks, the Royal Air Force has conducted five airdrops along the coastline of Gaza, safely delivering over 40 tonnes of food supplies, including water, flour and baby formula. 

Supporting the Jordanian humanitarian land corridor from Amman into Gaza and in partnership with the World Food Programme, the UK’s largest delivery of aid crossed the border on 13 March which saw more than 2,000 tonnes of food aid being distributed on the ground to families in need. Land deliveries will now be scaled up with the opening of the Erez crossing, which the UK wants to see reopened permanently. 

A full UK field hospital run by UK-Med is also now fully operational in Gaza and providing life-saving care. It has already treated more than 3,000 people, almost half of them children. 

Foreign Secretary, David Cameron, said: “The situation in Gaza is dire and the prospect of famine is real. We remain committed to getting aid to those who so desperately need it. Along with the US, Cyprus and other partners, we are setting up a new temporary pier off the coast of Gaza to get aid in as quickly and securely as possible.

“Land access remains crucial to deliver aid at the scale now required. The opening of Erez and the Port of Ashdod is hugely welcome and something the UK has long been calling for. Israel has also agreed to increase the number of aid trucks entering Gaza to a minimum of 500 a day. But we need to continue to explore all options, including by sea and air, to ease the desperate plight of some of the world’s most vulnerable people.”

Gazans are facing a devastating humanitarian crisis and there needs to be a significant increase in the volume of vital supplies entering the territory by all routes, as well as changes to ensure aid can safely be delivered on the ground.

Following the killing of World Central Kitchen aid workers last week, the UK government continues to call for urgent reform of deconfliction mechanisms, alongside assurances that guarantee the safety and security of humanitarian aid workers, who work tirelessly on the ground to ensure vital aid supplies reach those who need it most.

The multinational maritime corridor initiative will see tens of thousands of tonnes of aid pre-screened in Cyprus and delivered directly to Gaza, via the new US temporary pier being constructed off the coast or via Ashdod Port, which Israel has now agreed to open. The Prime Minister raised the importance of opening Ashdod to facilitate humanitarian aid earlier this week. 

Defence Secretary Grant Shapps commented: “A Royal Navy ship is now en-route to the Eastern Mediterranean to support international efforts to get life-saving aid to Gaza. 

“The Armed Forces are playing a central role in delivering aid, with the Royal Air Force recently completing five airdrops of food supplies for the people of Gaza. We are now going further, working with international partners to set up a humanitarian maritime corridor from Cyprus to Gaza. A new temporary pier on the coast of Gaza will be critical to supporting these efforts, by hosting cargo ships to deliver aid by sea. 

“I would like to thank all the personnel involved in this effort, working around the clock to help provide critical aid under immensely challenging circumstances.”

British military teams have been embedded with planning teams in the US operational HQ in Tampa as well as in Cyprus for several weeks to jointly develop the safest and most effective maritime route. The UK Hydrographic Office has also shared analysis of the Gazan shore with US planners to help establish the temporary aid pier.

PM statement on six-month anniversary of the October 7th attacks

Prime Minister Rishi Sunak, on the six-month anniversary of the October 7th Hamas terror attacks against Israel:

Today marks six months since the terrorist outrage of 7th October – the most appalling attack in Israel’s history, the worst loss of Jewish life since the Second World War. 

Six months later, Israeli wounds are still unhealed. Families still mourn and hostages are still held by Hamas. 

And after six months of war in Gaza, the toll on civilians continues to grow – hunger, desperation, loss of life on an awful scale.

We continue to stand by Israel’s right to defeat the threat from Hamas terrorists and defend their security.

But the whole of the UK is shocked by the bloodshed, and appalled by the killing of brave British heroes who were bringing food to those in need.  

This terrible conflict must end. The hostages must be released. The aid – which we have been straining every sinew to deliver by land, air and sea – must be flooded in.

The children of Gaza need a humanitarian pause immediately, leading to a long-term sustainable ceasefire. That is the fastest way to get hostages out and aid in. and to stop the fighting and loss of life. 

For the good of both Israelis and Palestinians – who all deserve to live in peace, dignity and security – that is what we will keep working to achieve.

An estimated £5 billion in support has been paid throughout Winter to help families with energy costs

Nearly £5 billion of support has been paid to help households with their energy bills this winter  

  • Over £4 billion was paid to pensioners between November and March through the Winter Fuel Payment and Pensioner Cost of Living Payment   
  • An estimated £550 million has been spent this winter as part of the Warm Home Discount to support three million households   
  • Over 1.1 million £25 Cold Weather Payments have been made to households in England and Wales

Halving inflation has ensured everyone’s money goes further, however we remain committed to supporting households across the country with 11.8 million pensioners receiving up to £600 in Winter Fuel Payments and Pensioner Cost of Living Payments.

On top of this, the Department for Work and Pensions (DWP) has today estimated over 1.1 million Cold Weather Payments worth £29.6 million were paid out from November until the end of March – with over £9 million of this going to low-income pensioners receiving Pension Credit.    

Further support was also made available through the Warm Home Discount – to support three million households at risk of fuel poverty, allowing families to keep costs down and more money in their pockets. The Government expects partnered energy suppliers to have spent around £550 million this winter across Great Britain, through direct bill rebates as well other financial and energy efficiency support. 

This support was needed to protect everyday Brits from the inflationary impact of Putin’s illegal war in Ukraine – helping millions of people get through the winter. Now – with energy bills dropping, wages rising, and taxes being slashed – people are set to have more cash in their pocket to help fire up the economy and beckon in more growth.   

We have turned a corner after the shocks of the past few years, and we are in a new economic moment and 2024 will prove to be the year that the economy bounces back.  

Minister for Pensions, Paul Maynard said:  “This Government’s actions have provided vital support to pensioners most in need.

“Halving inflation has helped everyone’s finances, and we remain committed to protecting our older loved ones across the country, with 11.8 million pensioners receiving up to £600 in Winter Fuel and Pensioner Cost of Living Payments. 

“And we are uprating the State Pension further from next week, meaning the full yearly basic State Pension will be £3,700 higher than in 2010, whilst the full rate of the New State Pension will rise above £11,500 a year.”

From this week people will start to see an increase in their Local Housing Allowance rates – benefitting some of the poorest families on either Universal Credit or Housing Benefit who will gain around £800 a year on average. This puts more money in the pockets of the lowest earners – giving them more spending power to boost their local economy.  

The UK Government is delivering £108 billion of support over 2022-2025 – worth an average £3,800 per household – and will continue to drive down inflation to help everyone’s money go further.    

These measures are boosted in April with Universal Credit and other benefits rising in line with inflation by 6.7 percent, and the State Pension increasing by an inflation-busting 8.5 percent – making sure that targeted support is going to those who need it most.  

Government rewards hard work with record tax cut for 29 million workers

  • 29 million workers receive largest ever cut to National Insurance
  • Government is sticking to its economic plan and rewarding hard work in this month’s pay packet, with over £900 a year boost for typical worker
  • Signals government’s long-term ambition to end unfair double tax on work

29 million workers will see their hard work rewarded from tomorrow (6 April), as record tax cuts come into full force.

Since Autumn 2023, National Insurance Contributions (NICs) for workers have been slashed by a third – the largest cut to NICs in history – with a longer-term ambition to end the unfair double tax on work and abolish employee and self-employed NICs altogether.

Since January, the main rate of employee National Insurance has been cut for 27 million workers from 12% to 8%, saving the average employee on £35,400 over £900 a year.

Over 2 million self-employed people will benefit from the main rate of Class 4 NICs being cut from 9% to 6% alongside the abolition of the requirement to pay Class 2 NICs – simplifying the tax system and saving an average self-employed person on £28,000 over £650 a year.

These cuts are possible because the economy is turning a corner, thanks to the government’s decisive action to bring inflation down from 11.1% to 3.4% and ensure borrowing costs start to fall. Because of this progress, the government can now cut taxes to reward work and grow the economy.

The tax cuts – worth £20 billion a year – mean that those individuals on average salaries will now pay less in personal taxes than they would in any other G7 country.

Prime Minister Rishi Sunak said: “Hard work is one of my core values, and the progress we have made on the economy means we can reward work with a tax cut worth £900 for the average earner.

“This marks the next step in our plan to end the unfairness of double taxation of work by abolishing National Insurance in the long term.”

Chancellor of the Exchequer, Jeremy Hunt, said: “The record tax cuts taking effect tomorrow show our economic plan is working – because of the progress we’ve made we’re putting hundreds of pounds a year back into the pockets of working people across the country.

“It shows we stand behind those who work hard and fires the starting gun on our long-term ambition to end the unfair double tax on work.”

The tax cuts will also help grow the economy by bringing more people into the labour market. The Office for Budget Responsibility (OBR) expects that, as a result of these combined cuts, total hours worked will increase by the equivalent of almost 200,000 full-time workers by 2028-29.

To mark the record cuts to NICs, HMRC has launched an updated online tool to help people understand how much they personally could save in National Insurance this year. 

They come into effect on the same day as an increase to the income threshold at which the High Income Child Benefit Charge (HICBC) starts – from £50,000 to £60,000 – taking 170,000 families out of paying the charge altogether.

The rate at which the HICBC is charged will also be halved from 1% of the Child Benefit payment for every additional £100 earnt above the threshold, to 1% for every £200, meaning Child Benefit will not be withdrawn in full until individuals earn £80,000 or higher.

As a result of these changes, 485,000 hard-working families will gain an average of £1,260 towards the costs of raising their children in 2024/25.

The government has also committed to consulting in due course on administering the HICBC on a household basis by April 2026, in recognition of how charging on an individual basis can sometimes lead to unfair outcomes, in particular for single parents and single earner families.

These changes to support hard-working families follow a raft of measures that came into force on 1 April that could save households up to £3,850 a year on average to help those struggling with cost-of-living while igniting the economy.

This includes a record increase in the National Living Wage from £10.42 an hour to £11.44, and a 12.3% drop in energy bills from the previous quarter. In addition, households can benefit from a separate increase to the Local Housing Allowance that will mean some of the poorest families on either Universal Credit or Housing Benefit will gain £800 a year on average.

And on Monday 8 April, the government will stand by its commitment to maintain the Triple Lock by raising the full basic State Pension by 8.5% to almost £170 a week, after the largest ever cash increase last year.

Changes like the introduction of the Triple Lock and new State Pension have meant pensioners are on average £1,000 better off than in 2010, according to the Resolution Foundation.

Sunak: ‘2024 is set to be the year Britain bounces back’

Cash boost for households as ‘historic’ National Living Wage increase comes into effect

  • More money in people’s pockets as a result of economic measures coming into effect today 
  • Raft of economic policies are set to boost UK households and reward work
  • Low pay eliminated with largest ever cash increase to National Living Wage

Thousands of households across the UK are set to be around £3,850 better off as a raft of economic policies come into force this week.

An increase in the National Living Wage and a drop in energy prices mean certain households will stand to get this extra cash in their pockets.

The National Living Wage has officially risen from £10.42 an hour to £11.44, meaning no full-time worker over 21 will earn less than two-thirds of the average hourly wage. This marks a £1,800 annual boost to their pay packet – delivering a manifesto commitment to eliminate low pay. 

Households will also save around £250 a year on average thanks to a drop in energy bills introduced by Ofgem today. This marks a 12.3% fall from the previous quarter, which brings prices down to their lowest since Russia’s invasion of the Ukraine in February 2022.

The Prime Minister, Rishi Sunak, said: “These measures could save households around £3,850 year on average which – taken with the upcoming cuts to NICs – will put more money in their pockets to help ignite the economy.

“Although recent years have tested our resolve, we have not bowed. We have stuck to the plan, more than halved inflation, and set us on a path to growth.

“Because of this determination, we find ourselves in a new economic moment and – thanks to our bumper package of economic reforms coming into force today – 2024 is set to be the year Britain bounces back.”

An increase to the Local Housing Allowance, also introduced on Monday, means some of the poorest families on either Universal Credit or Housing Benefit will gain around £800 a year on average. 

That runs alongside the roll out of 15 hours of free childcare, which will save working parents an average of £3,450 a year – the first stage in the £8 billion childcare package that was announced by the Chancellor last year.

Meanwhile, tax cuts to SMEs and the UK film industry will start benefitting firms up and down the UK to help drive growth in the economy.

This includes increasing the VAT threshold for small businesses, slashing business rates for high street businesses, funding apprenticeships, and igniting the British film industry with a 10 year tax relief. 

This bumper package of measures are coming into force today will fire up businesses and push the UK further into this new economic moment which sees Britain bouncing back.

The last few years have not been easy for the UK economy – the legacy of Covid, and global instability have tested financial systems across the world. 

Since the beginning of 2023, the Prime Minister has been working on five priorities – three of which were economic: to halve inflation, grow the economy and reduce debt. This has been achieved – and given us the headroom to deliver today’s package and slash the average workers taxes by £900 a year.

This puts the UK in a strong position to achieve the long-term ambition to abolish NICs entirely. This will put an end to the unfair system which means workers are taxed twice for the same work – NICs and Income Tax.

Chancellor of the Exchequer Jeremy Hunt said: “Today we are addressing low hourly pay, with increases for people earning the National Living Wage worth £1,800 to a full time worker. 

“It’s part of our plan to reward work which is why we’re also cutting National Insurance and delivering on our promise of more free childcare. All paid for by our progress in getting the economy back on track.

Baroness Philippa Stroud, Low Pay Commission Chair, said: “Today’s increases in the NMW and NLW mark a really significant milestone for the UK’s labour market. The Government set an ambitious, long-term target for the NLW which is being delivered. Today’s increases for young workers also reflect our ambition not to leave these groups behind.

“The target has boosted the incomes of low-paid workers in especially turbulent times and the evidence suggests the increases to date have been implemented steadily and carefully so as not to damage employment opportunities.

“Our work at the LPC to monitor the impacts of these increases is more important than ever. We invite contributions from workers, employers and other organisations to our imminent consultation.”

The measures coming into effect this week include:

National Living Wage increase

National Living Wage will increase from £10.42 an hour to £11.44 – representing a £1,800 boost to their yearly pay cheque. 

This means nobody over 21 will earn less than two-thirds of the average hourly wage increase – putting more money in the pockets of around 3 million of UK’s lowest paid workers.

A full-time worker on the National Living Wage will see their gross annual earnings increase by over £8,600 since it was announced in 2015, and by over £10,000 since 2010. 

Since its introduction, the National Living Wage has boosted the pay of millions of low-paid workers without any significant effects on employment.

SME VAT rate boost

The VAT threshold is being raised from £85,000 to £90,000. This means 28,000 fewer small businesses will be paying VAT at all from today.

The UK has a higher threshold than all EU countries, giving UK small businesses more cash to scale and grow their companies.

Apprenticeships fully funded by Government

The Government will fully fund apprenticeships for young people in small businesses from today by paying the full cost of training for anyone up to age 21. 

This is backed by £60 million of funding and will support up to 20,000 new apprenticeships. 

Business rate cuts for high street businesses

Retail, hospitality and leisure businesses will continue to benefit from 75% off their business rates relief for yet another year.

This protects 230,000 high street properties from rising costs and saves the average pub nearly £13,000 over the next tax year.

The small business multiplier for business rates will be frozen for a fourth consecutive year, protecting over one million ratepayers from a 6.6% increase in bills.

Tax relief for UK film industry (England)

Film studios across England will receive 40% business rates relief on gross business rates bills until 2034.

This £470 million tax cut will ensure the UK remains an attractive place for its £11.9 billion film and high-end TV sector.

This is alongside the transformational UK Independent Film Tax Credit (IFTC), designed to boost the production of UK independent films and support UK talent in films. 

Under the IFTC, eligible films will be able to claim an enhanced credit, at a rate of 53%, on their qualifying expenditure.

Local Housing Allowance boosted

Depending on the benefit you receive and your payment schedule, eligible claimants will start to see an increase in their Local Housing Allowance rates.

The boost will benefit some of the poorest families on either Universal Credit or Housing Benefit who will gain around £800 a year on average. 

This puts more money in the pockets of the lowest earners – giving them more spending power to boost their local economy.

New Energy Price Cap begins

Energy bills will fall by around £238, saving millions of households around £20 a month.

Energy prices are now at their lowest level in two years/since Putin’s illegal invasion of Ukraine, putting more money back into the pockets of hardworking families.

Households will now also benefit from £30 compensation if switching their supplier takes more than 5 working days, thanks to changes from Ofgem coming into force. 

The move will give families reassurance that switching to cheaper deals can be quick and easy, as competition starts to return to the market. 

Household Support Fund extended by six months (in England)

The six-month extension to the Household Support Fund starts today – backed by £500 million (£421 million to LAs in England and £79 million to DAs via Barnett.

This boost to the Household Support Fund will give vital, targeted support to millions of vulnerable households across England. 

The fund has previously been used to help with water bills, provide health visits, disabled children services, free school meals and more.

Since launching in October 2021 over £2.5 billion has been invested into the Household Support Fund.

Since October 2022, CPI has already more than halved from 11.1% to 3.4%. This is stabilising the financial situation for many families, and the OBR expects that by Quarter 4 2024 (October-December) CPI will have fallen to 1.4%.

Childcare rolled out for working parents of 2 year olds (in England)

15 hours free childcare has been rolled out to parents of 2 year olds, which will save working parents an average of £3,450 a year.

This is the first stage in the £8 billion childcare package that was announced by the Chancellor last year – the biggest expansion of Government childcare provision in history.

First Minister calls for UK ban on license of arms exports to Israel

Latest appeal to Prime Minister as humanitarian worker death toll nears 200

First Minister Humza Yousaf has called for an immediate end to arms sales from the UK to Israel in a letter to Prime Minister Rishi Sunak.

The full text of the First Minister’s letter:

To: Prime Minister Rishi Sunak

From: First Minister Humza Yousaf

In my letter to you of 23 February, I called upon the UK Government to ban the license of arms exports from the UK to Israel, given the risk of increasing bloodshed caused by Israel’s threat to carry out a ground offensive into Rafah. I note that I have yet to receive a response and you have taken no such action, despite the death-toll continuing to increase.

The latest tragedy, which saw three British aid workers killed amongst others by an Israeli air strike against a World Central Kitchen convoy, has caused global outrage. I note your public statement calling for an immediate investigation, however over 190 humanitarian workers have died in Gaza since the beginning of the conflict, with no end in sight, no accountability, and little or no sign of Israel paying heed to the International Court of Justice’s ruling or the recent United Nations Security Council Resolution.

In spite of this, the UK Government continue to allow British-based companies to arm Israel despite the fact that Israel has killed children, women, aid workers and bombed hospitals, schools and refugee camps.

I have said repeatedly that Israel has the right to defend itself and called for hostages to be released. I believe, however, that Israel’s actions have long since gone beyond a legitimate response. Enough is enough. The Israeli Government must be held to account.

I therefore write again to demand an immediate end to arms sales to Israel from the United Kingdom. The civilian death toll is intolerable, as is the killing of humanitarian workers who deliver vital aid to Palestinians facing starvation and violence at the hands of this Israeli government.

By not stopping arms sales to Israel, the UK is in danger of being complicit in the killing of innocent civilians.