Tag: UK Government

50,000 more young people to benefit from apprenticeships as Government unveils new skills reforms

The £725 million package of reforms to the apprenticeship system will help to tackle youth unemployment and drive economic growth, with thousands more young people expected to benefit over the next three years.

  • Major £725 million investment to deliver more apprenticeships for young people and help match skills training with local job opportunities.
  • Young people to benefit from increased access to training with full cost of apprenticeships at SME’s covered by Government.
  • New wave of foundation apprenticeships in sectors such as retail and hospitality sectors to get young people into work.
  • Backing thousands more apprenticeship starts for young people through a £140 million partnership with local leaders.
  • 50,000 young people across the country will be better equipped for jobs of the future through a major investment to create more apprenticeships and training courses.

The £725 million package of reforms to the apprenticeship system will help to tackle youth unemployment and drive economic growth, with thousands more young people expected to benefit over the next three years.

The latest funding includes a £140 million for a pilot where Mayors will be able to connect young people – especially those not in education, employment or training (NEET) with thousands of apprenticeship opportunities at local employers.

By partnering with regional leaders who best understand their local economies, these pilots will ensure young people can access training that meets the needs of employers in their area.

As part of the package, the government will also cover the full cost of apprenticeships for eligible young people under 25 at small and medium-sized businesses.

Removing the 5% co-investment rate for SME’s means that the training costs for all eligible under 25 apprentices are fully funded opening up thousands of opportunities for young people. This will make it easier for young people to find opportunities and remove the burden from businesses, making it easier for them to take on young talent.

Businesses will also benefit from a major boost in flexibility as new short courses in cutting-edge areas including AI, engineering and digital skills will begin rolling out from April 2026.

This includes working closely with the defence sector to develop a new suite of flexible, work-based training options to help employers upskill their existing workforce in the critical skills needed for future success.

Today’s announcement comes alongside plans to open up new waves of foundation apprenticeships in sectors such as hospitality and retail.

The reforms will simplify and modernise the apprenticeship system, making it more efficient and responsive to the needs of employers and learners. From April 2026, short courses will be introduced to provide more flexible training options and a new Level 4 apprenticeship in AI will also be introduced, supporting employers to develop the skills of their workforce.

The reforms to the Growth and Skills Levy build on the Prime Minister’s ambition for two-thirds of young people to participate in higher level learners – academic, technical or apprenticeships – helping more young people gain the skills they need to start their careers.

Prime Minister Keir Starmer said: “For too long, success has been measured by how many young people go to university. That narrow view has held back opportunity and created barriers we need to break.

“If you choose an apprenticeship, you should have the same respect and opportunity as everyone else. That’s why the Government is investing £1.5 billion through the Youth Guarantee and the Growth and Skills Levy – creating 50,000 more apprenticeships and foundation apprenticeships for young people over the next three years.

“It’s time to change the way apprenticeships are viewed and to put them on an equal footing with university. This is a defining cause for this government and a key step towards our ambition to get two-thirds of young people in higher-level learning or apprenticeships.”

Work and Pensions Secretary Pat McFadden said: “Every young person deserves a fair chance to succeed. When given the right support and opportunities, they will grasp them.

“That’s why we are introducing a range of reforms to help young people take that vital step into the workplace or training and to go on and make something of their lives.

“This funding is a downpayment on young people’s futures and the future of the country, creating real pathways into good jobs and providing work experience, skills training and guaranteed employment.”

The reforms are designed to tackle the sharp decline in apprenticeship starts among young people over the last decade – which have fallen by almost 40% since 2015/16 and shift the focus towards supporting young people into high-quality training and employment.

This latest intervention follows an £820 million investment guaranteeing every young person the chance to gain the skills they need for success and support to find a job. This package will create 300,000 more opportunities to earn and learn and provide guaranteed jobs to almost 55,000 young people.

Over the coming months, DWP and Skills England will work intensively with business on the right balance to further boost apprenticeship starts for young people while delivering the right flexibilities for business.

Skills England will drive forward, with the Office for Investment, the service to support major investors and help them navigate the skills system. It will also establish a new skills infrastructure development service to support businesses to get training for jobs off the ground as quickly as possible and support young people in their careers.

McLaren Automotive Chief Executive Officer Nick Collins said: “Apprenticeships are a critical pipeline for developing the next generation of talent. They provide an immersive pathway for young people to gain practical experience and learn in real world environments.

“At McLaren we recognise the importance of investing in people and skills to create the world’s most extraordinary supercars. We are proud to inspire and equip the next generation to continue this tradition of excellence.”

Craig Beaumont, Executive Director at the Federation of Small Businesses, said: “Small businesses are incredibly enthusiastic about apprenticeships, and we are pleased the Government is taking steps to make the system more small business friendly.

“It will help unlock more local roles, meaning small firms can do what they do best – taking people on and giving them a great chance in life.”

Rt Hon Robert Halfon, Executive Director, Make UK, said: “Manufacturers support the Government’s commitment to a more flexible Growth and Skills Levy to boost investment in high-quality training.

“The development of foundation apprenticeships has been a positive step in ensuring that effective entry level routes into employment are there for young people.

Industry is also keen to work with mayoral authorities to recruit more young people into engineering and manufacturing apprenticeships. Enabling more businesses to invest in work-based training is critical to supporting more young people into skilled work, and mayoral authorities bringing together employers and young people will help this to happen.

Chris Perriton, Head of Learning Pathways, Marston said: “At Marston’s, we believe apprenticeships are a vital pathway for young people to build confidence, gain practical skills and unlock long-term careers in hospitality.

“We welcome the Government’s commitment to expanding opportunities and driving skills development, and we’re proud to play our part by offering high-quality apprenticeships across our pubs and support teams.

“These programmes not only provide hands-on experience but also the structured training and mentoring needed to help the next generation thrive in our industry.”

Dan Clarkson, Chief Operating Officer, Lee Marley Group said: “Apprenticeships play a vital role in sustaining the strength and capability of the construction industry. They give young people the structured development and real-world experience they need to carry essential craft skills forward, while building the confidence to pursue long-term, rewarding careers.

“As construction continues to evolve, apprenticeships help address skills shortages and uphold the high standards our built environment depends on. Supporting future talent is a responsibility we take seriously, and it remains central to everything we do at Lee Marley Group.”

Almost a million young people to benefit from expanded support, new training and work experience opportunities

  • The funding will create 350,000 new workplace opportunities designed to support young people into employment.
  • Hundreds of thousands more young people on Universal Credit to benefit from dedicated support.
  • Guaranteed jobs scheme to roll out in areas with some of the highest need from Spring 2026.

Almost one million young people will benefit from learning or employment opportunities as a result of a major £820 million funding package.

Thanks to the funding, 350,000 new training or workplace opportunities in sectors including construction, health and social care and hospitality will be provided to young people on Universal Credit to help them develop on the job skills, employer networks, and CV and interview coaching – breaking down barriers to employment and ensuring every young person has the chance to reach their potential.

In total, 900,000 young people on Universal Credit and looking for work will also benefit from a dedicated work support session, followed by four additional weeks of intensive support.

They will be referred to one of up to six pathways by their work coach: work, work experience, apprenticeship, wider training, learning or a workplace training programme with a guaranteed interview, designed in partnership with employers.

The investment will provide a springboard to a better future for close to a million young people, giving them the chance to gain crucial skills and support to find a job with long term prospects. 

As part of this training, young people will receive six weeks of training, work experience, and a guaranteed job interview, giving young people their first foot in the door towards meaningful employment, boosting their prospects and supporting a stronger economy as part of our Plan for Change.

55,000 young people also stand to gain from a government-backed guaranteed job, which will begin roll-out from Spring 2026 in areas with some of the highest need in Great Britain. These regions are:

  • Birmingham & Solihull
  • East Midlands
  • Greater Manchester
  • Hertfordshire & Essex
  • Central & East Scotland
  • Southwest & Southeast Wales

More than 1,000 young people are expected to start a job in the first six months alone, with local partners and employers to play a key role in supporting young people as they transition into meaningful employment with fully funded wages and wraparound support for young people.

Alongside this, Youth Hubs – centres where young people can receive vital help to get them back on track – will be expanded to every local area of Great Britain, bringing the total to over 360. This will ensure young people up and down the country can access the lifechanging support Youth Hubs offer, such as CV advice, skills training, mental health support, housing advice, and careers guidance.

There is an expectation that young people will take up the opportunities they are offered, and sanctions to benefits could be applied for those who don’t engage with the offered support without good reason.

Work and Pensions Secretary Pat McFadden, said: “Every young person deserves a fair chance to succeed. When given the right support and opportunities, they will grasp them.

“That’s why we are introducing a range of reforms to help young people take that vital step into the workplace or training and to go on and make something of their lives.

“This funding is a downpayment on young people’s futures and the future of the country, creating real pathways into good jobs and providing work experience, skills training and guaranteed employment.”

Education Secretary Bridget Phillipson said: “Too many young people fall out of education unnoticed, crippling their life changes and denting the economy.

“Smarter data and early-warning tools will change that – helping us to spot risks sooner, step in faster, and keep learners on track through our Plan for Change.

“With these ambitious measures, we can break down barriers to opportunity to make sure every young person gets the support they deserve.”

Recent data shows that almost one million young people are not in education, employment, or training (NEET), a 26% increase from pre-pandemic levels. Today’s announcement represents a major intervention to reverse this trend and ensure no young person is left behind.

It builds on a wide range of measures the Government is bringing forward to support young people, including expanded funding for youth trailblazers, and a major investigation spearheaded by Alan Milburn into the barriers preventing the young from accessing work.

Earlier intervention is being prioritised, with a £34 million investment to make it easier to identify young people who need support before they drop out of the system. This includes a new Risk of NEET indicator tool, giving local areas more accurate insights to target support where it’s needed most.

The Government will also invest in further education attendance monitoring and provide targeted support for young people in state-funded alternative provision schools, helping them secure valuable work experience.

To ensure young people transition effectively from school into post-16 education or training, we are working with schools and piloting automatic enrolment with further education providers for young people without a place.

As announced by the Chancellor, the Government has committed to delivering a Jobs Guarantee for 18 to 21-year-olds who have been searching for work whilst in receipt of Universal Credit for 18 months.

The initiative will provide 25 hours/week of fully subsidised six-month paid work to every eligible 18- to 21-year-old who has been on Universal Credit and looking for work for 18 months. The young people will be paid at the relevant minimum wage and also receive fully funded wrap around support.

The Government is finalising its National Youth Strategy, shaped by insights from over 14,000 young people, that will set out a long-term vision for youth policy across government.

Laura-Jane Rawlings MBE, CEO & Founder, Youth Employment UK: “The Youth Guarantee is a hugely important step forward and reflects many of the recommendations we have championed through our work.

“More than 8,000 young people took part in our 2025 Youth Voice Census, and the message was clear: they value work experience, skills development and local support, but too often cannot access it.

“This package – from the Youth Guarantee Gateway and expanded Youth Hubs to additional work experience, SWAPs and apprenticeships – represents the most focused investment in tackling youth unemployment we have seen in many years.

“We particularly welcome the commitment to early support, personalised pathways and strong local partnerships. We look forward to working closely with the government, Mayors, local areas and employers to ensure delivery reaches every young person, especially those facing the highest barriers. Together, we can make this Guarantee a meaningful reality for all.”

Barry Fletcher, CEO at Youth Futures Foundation said: “Youth Futures Foundation welcomes the Government’s focus and investment in tackling the growing, stubborn challenge of youth unemployment and inactivity.

“Today’s measures present an ambitious, comprehensive package to reform the system and support more young people into earning or learning.

“Crucially, reforms like the Jobs Guarantee are grounded in the evidence of what works, especially for marginalised young people. This will be vital to ensure a better future for young people and drive long-term economic prosperity.”

Naomi Clayton, CEO, Institute for Employment Studies, said: “With one in eight young people out of work and not in education and training, and the lasting scarring effects that can have, we’re pleased to see the government’s reforms to support more young people.

“We welcome the dedicated support being introduced through the Youth Guarantee Gateway to help prevent young people becoming long-term unemployed, alongside broader preventative measures to make it easier to identify young people who need support. We also welcome the wraparound support that will be provided to long-term unemployed young people as part of the Jobs Guarantee.

“Supporting young people to access meaningful work experience, training opportunities and good jobs will help secure a brighter future for a generation, their communities and the economy.”

Richard Rigby, Head of UK Government Affairs at The King’s Trust said: “At The King’s Trust, we know that when you match young people’s potential with opportunity, they can transform their own lives. This Youth Guarantee is a crucial step towards unlocking that potential.

“Increasing training and work experience opportunities, alongside a guaranteed job scheme for the long-term unemployed, will help the young people we support in our centres each day to start overcoming the barriers they face, and take their first steps into work.

“If we get this right, we can transform the futures of young people out of work across the UK, and build a healthier, wealthier society.”

Neil Morrison, HR Director at Severn Trent said: “Giving a young person that first opportunity can be game changing, so we’re fully supportive of government’s Youth Guarantee.

“At Severn Trent we’re tackling youth unemployment head on, and we’re giving young people real chances to grow and creating opportunities that unlock potential and true talent. We look forward to working together on this, and the role business can play in giving the next generation the very best start.”

Susannah Hardyman, CEO of Impetus, said: “We are delighted that the Government has chosen to invest in the futures of young people.

“With hundreds of thousands of young people neither earning nor learning, and young people from disadvantaged backgrounds twice as likely to be NEET as their better off peers, this Youth Guarantee is much-needed to ensure everyone aged 16-24 gets the support they need to succeed, whether that’s a work placement, work experience or training.

“Expanding Youth Hubs across the country is a particularly encouraging move, especially as they are a place where young people can access support even if they are not currently claiming Universal Credit.

“As our Blueprint for a Youth Hub research found, a culture of hospitality enables Youth Hubs to be an easy front door for young people to start accessing the opportunities they need for a fulfilling life.”

Rain Newton-Smith, CBI Chief Executive, said: “There is a moral and economic imperative for government and businesses to work together to support more young people into training and work.

“These announcements will allow more young people to gain the vital experience that only work can provide.”

Dr Emily Andrews, Director of Policy and Research at the Learning and Work Institute, said: “With nearly one million young people neither earning nor learning, we welcome today’s announcements to tackle the current waste of potential and boost our future workforce.

“Building on our long-standing call for a Youth Guarantee, we are pleased to see a more comprehensive offer developing, with a range of new opportunities for young people to access experience and training in the workplace.

“Crucially, the national system-level offer is being balanced by more place-based approaches, including Trailblazers and the continued expansion of youth hubs to reach young people outside the benefits system.

“We will continue to work with partners on the delivery and implementation of this package at a national, regional and local level, to make the most of these opportunities.”

Debbie Cook, EFL’s Director of Community said: “From employment, mentoring and education programmes to sport and wellbeing initiatives, EFL Football Clubs and their charities are deeply embedded in their communities, empowering young people to unlock their potential and thrive.

“Through the Youth Guarantee, we look forward to maximising opportunities for young people via new employment hubs in EFL communities, ensuring they can access guaranteed pathways into work, training, and skills development.”

Patrick Milnes, Head of People and Work Policy, at the British Chambers of Commerce, said: “The number of young people who are not in education, employment or training is at its highest level for a decade.

“BCC research also shows that 75% of businesses are struggling to recruit skilled workers, so it is good to see the government taking action with an ambitious plan to get young people into work.

“Expanding Youth Hubs and investing in the Jobs Guarantee will help young people gain the skills and experience needed to succeed in the workplace. Our network of 51 Chambers of Commerce across the UK stands ready to help government deliver the Youth Guarantee in full.

“Ensuing young people can access fulfilling careers and businesses can find the talent they need are vital to unlocking growth.”

Tracey Collins, Director of Emerging Talent and Social Impact at Kier, said: “At Kier, we are committed to providing opportunities for young people and bring emerging talent into construction through hundreds of work experience and apprenticeship positions every year.

“It’s important that these opportunities are open to everyone, regardless of background or history, as every young person deserves the chance to flourish.

“To support this, we are delivering a number of initiatives to make Kier accessible to underrepresented groups including a pilot project with the Youth Futures Foundation as well as through our Kierriculum schools’ engagement programme.

“We believe that the Youth Guarantee will further strengthen this activity and we are proud to support the government’s work to collectively reduce long-term youth unemployment and help them reach a better future.”

  • The targeted support for young people at particular risk of becoming NEET to secure work experience will focus on pupils in state-funded Alternative Provision settings.
  • Alternative Provision refers to education provided outside mainstream or special schools for children who cannot attend a regular school—often due to exclusion, health needs, or other circumstances

Small Business Saturday: Government urges the nation to back Britain’s small firms

  • Government calls on the public to get out together and shop local on Small Business Saturday 
  • National celebration of the UK’s entrepreneurs comes off the back of the flagship Small Business Plan to boost the nation’s 5.7m small businesses with the strongest reforms to tackle late payments in 25 years 
  • New ‘Backing Your Business’ campaign launched to help businesses get what they need to thrive, from sole traders and start-ups to high street shops and family businesses  

Help support your local small businesses this busy Christmas period – that’s the message from the government today as it calls on friends, family, neighbours and colleagues to come together and shop local on Small Business Saturday (6 December) – a national celebration of the UK’s entrepreneurs and the 5.7 million small businesses that power our economy.

Small businesses employ 60% of the UK workforce, generate £2.8 trillion in turnover, and are the backbone of communities across the country. New data shows that supporting them this festive season could deliver a £5 billion boost for SMEs, with spending expected to rise 19% on last year.

The launch of the new Backing Your Business campaign comes hot on the heels of the Government’s flagship Small Business Plan, which includes the strongest reforms to tackle late payments in 25 years – designed to help sole traders, start-ups, family firms and high street shops access the support they need to thrive.

Business Secretary Peter Kyle said: “This country is home to some of the brightest entrepreneurs and innovative businesses in the world and our Small Business Plan is a key driver to accelerating that potential. 

“This Small Business Saturday is a great chance to get out to your local high streets and support small businesses.

“Whether it’s your local shop, tradesperson, or high street retailer, these are the people who work day and night and power our communities and our economy.” 

Ministers have been out and about vising a range of inspiring small businesses in the lead up to Saturday, including the innovative Stoke animation studio Carse and Waterman, award winning Glaswegian sweet shop Jeavons Toffee, and London’s boutique dog groomers Bow Wow. 

Michelle Ovens CBE, Director, Small Business Saturday UK said:  “Small businesses are the nation’s favourites businesses and they are essential to both their communities and the whole economy. 

“Indeed our research with American Express found 95% of people feel small businesses add value to local areas and 84% believe the nation needs to support them.

“At this crucial time of year for many small firms it is vital that the nation remembers their favourite small businesses and goes out to support them this Small Business Saturday and beyond.” 

If small business across the UK grow by just 1 percentage point annually this could add £320 billion to the economy by 2030. As well as the campaign, the government is focused on delivering for small business by:

  • Tackling late payments with the strongest reforms in 25 years, going further than any previous government.
  • Putting more money in customers’ pockets by taking £150 off energy bills, and freezing rail fares and prescription charges.
  • Raising the rate when small businesses start to pay national insurance.
  • Slashing electricity prices for thousands of manufacturing businesses.
  • Making training for under-25 apprenticeships free for small businesses.
  • Supporting working parents with 30 hours free childcare a week saving £7,500.
  • Capping the increase in business rates as pandemic support measures taper off, with a £4.3 billion package meaning most business property increases are capped at 15%.
  • Doubling eligibility for enterprise tax incentives to help fast-growing firms attract investment and talent.
  • Slashing red tape so that more bars and pubs can expand outdoor dining

Earlier this year, the flagship Small Business Plan was launched alongside the Business Growth Service, which included a series of measures aimed at boosting finance but also tackling the scourge of late payments with proposed laws that would be the most comprehensive reforms for 25 years.

The government has since worked closely with businesses and concluded its consultation on late payments, and it will deliver its response in the new year.

That finance package included a £4bn finance boost including £1bn for start-ups with 69,000 Start-Up Loans and mentoring support, and a further £3bn boost to the British Business Bank that will help lenders offer more accessible small business loans through the ENABLE programme.

Over half a million children to be lifted out of poverty as government unveils child poverty strategy

  • New strategy to lift 550,000 children out of poverty by 2030 – delivering the largest reduction in child poverty since records began
  • Support for working families to stop children growing up in B&Bs, expanding childcare for families on UC and helping parents save up to £500 on baby formula
  • Families struggling with the cost of living to benefit from wider support announced at budget including £150 off energy bills, increasing the living wage by £900 a year and removal of two-child limit
  • Part of the Government’s plan to deliver more security, opportunity, and respect for every family across the UK

Around 550,000 children will be lifted out of poverty by 2030 – the biggest reduction in a single parliament since records began – as the Government launches its Child Poverty Strategy today (Friday 5 December).

Following the reversal of the two-child limit, the strategy tackles the root causes of poverty by cutting the cost of essentials, boosting family incomes, and improving local services so every child has the best start in life.

The strategy found that children growing up in poverty do less well in school, are more likely to be unemployed when older and earn less throughout their lifetimes. Failure to tackle this problem has been holding back the economy, as well as stifling children’s potential.

New interventions in the strategy include more accessible childcare for working parents on Universal Credit. Childcare costs are one of the biggest barriers for parents who want to work and those starting or returning to jobs can particularly struggle to cover upfront childcare fees before they receive their first payslip.

From next year, the rules will change to make it easier for new parents who receive Universal Credit to get back to work by extending eligibility for upfront childcare costs to those returning from parental leave. This will prevent new parents from facing a debt trap meaning more parents can get back to work and get on in work faster.

To support more parents with more than two children into work, families who receive Universal Credit will also be able to get support with childcare costs for all their children. 

Children living in temporary accommodation are living in one of the deepest forms of poverty, this has a devastating impact, particularly on children. A stay in temporary accommodation increases a child’s experience of family disruption, missed schooling and damage to physical and mental health.

The strategy will also end the unlawful placement of families in Bed and Breakfasts beyond the six-week limit. To support this, the Government is investing £8 million in Emergency Accommodation Reduction Pilots in 20 local authorities that have the highest use of Bed and Breakfasts for homeless families – continuing the programme for the next three years.

Alongside this, the government will provide £950 million through the fourth and largest round of the Local Authority Housing Fund from April 2026 to deliver up to 5,000 high-quality homes for better temporary accommodation by 2030. Further details will be set out in the upcoming Homelessness Strategy.

A new legal duty will also be introduced for councils to notify schools, health visitors, and GPs when a child is placed in temporary accommodation, so no child is left without support. This enables health and education providers to deliver a more joined up approach to support children experiencing homelessness.

The UK Government will also work with the NHS to end the practice of mothers with newborns being discharged to B&Bs or other forms of unsuitable housing.

The government will also support families with the cost of essentials by helping families to buy more affordable infant formula. The cost of some infant formula brands has risen by 25% in two years, putting pressure on families who cannot or choose not to breastfeed.

The government will set clear guidance for retailers that – together with allowing families to use loyalty points, vouchers, and gift cards to purchase formula – could save parents up to £540 in a baby’s first year and remove unnecessary barriers for low-income families.

Taken together, the measures in the strategy will lift 550,000 children out of relative low income at the end of this Parliament, with 7.1 million children seeing household incomes rise, including 1.4 million in deep material poverty – the largest reduction in child poverty by any Government in a single Parliament.

Prime Minister Keir Starmer said: “Every child deserves the best possible start in life, with their future no longer determined by the circumstances of their birth. Yet too many children are growing up in poverty, held back from getting on in life, and too many families are struggling without the basics: a secure home, warm meals, and the support they need to make ends meet.

“I will not stand by and watch that happen, because the cost of doing nothing is too high for children, for families, and for Britain.

“This is a moral mission for me. It’s about fairness, opportunity, and unlocking potential. Our strategy isn’t just about reversing the failures of the past, it sets a new course for national renewal, with children’s life chances at its heart.”

Secretary of State for Work and Pensions, Pat McFadden said: “Tackling child poverty is an investment in working families and our country’s future.

“There is a direct link between children in poverty growing up to be adults not in work, education or training – we cannot afford to waste a generation’s potential and talents. 

“Our strategy will deliver support where families need it most, giving every child a good start in life and giving them the opportunity to succeed.”

Education Secretary Bridget Phillipson said: “Child poverty is a stain on our country. I’ve seen the damage poverty does first hand, and bearing down on it sits at the very core of this government’s mission.

“This strategy, lifting over half a million children out of poverty, represents an historic moment for generations of families now and into the future.

“And whether it’s expanding free school meals, rolling out free breakfast clubs, or revitalising family services, we are determined to give every child the very best start in life.”

It comes as the Prime Minister visits a children centre in Wales today with the Welsh First Minister to meet families and children who are set to benefit from the interventions in the strategy.

It follows his visit to Glasgow yesterday where he spoke to Child Poverty Campaigners, MSPs, and other key partners to discuss the Government’s strategy to cut child poverty across the UK.

Stacey, from Changing Realities an organisation which has supported the development of the Child Poverty Strategy, discussed her experiences with the Prime Minister in Wales today. She said: “This strategy makes a good start to the essential work of addressing record levels of child poverty in this country.

“Lifting the two-child limit is a step on the road to investing in our children and our social security system, and can only be a good thing in lifting hundreds of thousands of children out of poverty.

“After championing the removal of the two-child limit over the last year, even though my own family won’t benefit it is great to finally feel listened to and knowing the difference this change will make.

“As a parent who knows first-hand the harm poverty causes, I stand ready and determined to continue the work required to ensure that no child in this country faces poverty. I call on all of us to do the same.”

Shortly after the election, the Prime Minister set up the Child Poverty Taskforce to bring together government and experts to explore how Government could use all its available levers to drive down child poverty. 

This strategy is the first step on our road to ending child poverty and delivers on the commitment to reduce child poverty this parliament.

It comes as child poverty levels in the UK has reached a historic high. Today, 4.5 million children (around 31%) are living in relative poverty after housing costs, 900,000 more since 2010/11. Around 2.6 million children are growing up in households without enough food, and last year 1.1 million relied on food banks.

In England alone, more than 172,000 children are living in temporary accommodation and three quarters of children in poverty now come from working families.

Children growing up in poverty are more likely to not be in education, employment or training as an adult, earn less than their peers and less likely to achieve good GCSE results or do well at school.

Acting now will cost significantly less than the long-term consequences of poverty.

Tackling child poverty is not just a moral imperative – it is an investment in Britain’s future.

That’s why the Labour government is reversing the two-child limit in Universal Credit – a failed policy experiment that punished children and been one of the biggest drivers of hardship since its introduction in 2017.

The majority of families who will gain from the removal of the limit are in work. Around 300,000 children are in poverty directly because of this policy, equivalent to 100 children pushed into hardship every day. Without intervention, 150,000 more would have fallen into poverty by 2030. 

Removing the two-child limit is the most cost-effective way to drive down child poverty rates – lifting 450,000 children out of poverty in the final year of this Parliament, rising to 550,000 alongside other measures such as the expansion of free school meals, help with energy bills and the government’s childcare offer.

Priya Edwards, senior research and policy manager at Save the Children UK, said: “Families will be better off under this plan with 7.1 million children seeing their household incomes boosted by the end of this Parliament.

“Scrapping the two-child limit to benefits, expanding free school meals, and increasing childcare support for families including for those returning to work after maternity leave are bold measures to improve childhoods’ – not the sticking plaster measures of the past. 

“Ministers involved in creating the strategy listened extensively to children impacted by deep poverty over many months and we hope this way of working is used as a blueprint for creating policy in future that impacts young people. 

“We welcome this expansive and historic plan, and we look forward to seeing the difference it can make to children’s lives in the years to come.”

Dame Clare Moriarty, Chief Executive of Citizens Advice, said: “here is no excuse for child poverty, which damages countless children’s lives every single day. This is the moment when we must draw a line in the sand – and as a country do everything in our power to turn the tide for children growing up in poverty and hardship.

“We applaud the publication of this Child Poverty Strategy.  If fully delivered, the commitments made today have real potential to transform children’s lives. Our focus now is on ensuring these promises translate into action on the ground, helping to put food on tables, stability in households and hope back into children’s lives.

“We stand ready to work with government to help make that happen.”

The Joseph Rowntree Foundation said: “This morning, the government published its full Child Poverty Strategy, setting out plans to reduce hardship for children growing up in the UK by the end of the parliament.

“It’s a crucial commitment to delivering on one of their central manifesto promises.”

For the first time, this government will also target reductions in deep material poverty as part of the strategy, which goes beyond a family’s income, to understand children’s experience of poverty and measures the number of children in the UK who are going without essentials such as three meals a day or growing up in a damp-free home.

Two million children (14%) are currently in deep material poverty, lacking at least 4 of 13 essential items.

This is a UK-wide strategy, with ministerial roundtables in Scotland, Northern Ireland and Wales which were attended by ministers of the respective nations, and ministers and officials having visited all the regions of England to meet with key child poverty representatives and visit frontline delivery projects.

Respecting devolution settlements and complementing work that is already underway in nations and regions is central to this strategy. Each nation has its own distinct devolution settlement which sets out powers to tackle child poverty.

These powers vary across nations, with some levers being devolved to the governments of Scotland, Wales and Northern Ireland, while others remain reserved to the UK government.

Devolved governments also receive funding through the Barnett formula.

Call on communities to get involved in Pride in Place

Local people are invited to join their neighbourhood boards to have a say in shaping their areas over the next decade as part of the Pride in Place programme

  • Communities to receive a jump start to the Pride in Place programme with an initial £150,000 to 169 communities to begin delivering the change they want to see.
  • Local people invited to join their new Neighbourhood Board and take control of up to £20m of funding and support to deliver a decade of change in their neighbourhoods.
  • This comes as Phase One areas get started on their ambitious regeneration plans to transform their neighbourhoods.

People across the country are being urged to sign up to new Neighbourhood Boards – set up as part of the Pride in Place programme – to decide how £20m of new funding is spent in their communities over the next decade.

Pride in Place will empower neighbourhoods to make the changes they need in their communities to restore local pride and reinvigorate their areas, based entirely on local voices and priorities.

From revitalising their high street to setting up a community sports league, or boosting healthy eating with community cooking classes, guidance published today sets out a range of potential project ideas and provides communities with the toolkit to choose the projects that are right for them and suit their local needs and ambitions.

Alongside this, each of the 169 areas in receipt of Phase Two Pride in Place funding will now receive £150,000 of their funding early in the new year to enable them to get the ball rolling sooner on rebuilding their local communities, setting up their Boards and engaging the community on plans for the next decade.

Prime Minister Keir Starmer said: “Whether it’s breathing new life into a high street, setting up a local sports league, or saving the pub at the heart of your community – Pride in Place is about putting power back where it belongs: in the hands of local people.

“We’re backing the local residents who step forward, join their Neighbourhood Boards, and help shape a decade of transformation.

“This isn’t about short-term fixes – it’s about lasting change that restores pride, strengthens communities and creates opportunities for everyone.”

Secretary of State for Housing, Communities and Local Government, Steve Reed, said: This is about bringing lasting change to people’s communities after years of decline.

“So today we’re calling on people up and down the country to get involved in bringing back pride to their community and country.”

Minister for Devolution, Faith and Communities, Miatta Fahnbulleh, said: “Putting local people at the centre of the Pride in Place Programme is what really puts the value behind this money.

“Change and investment means nothing unless local people have their voices heard and their priorities met, so we are putting the residents that know there area best in the driving seat.”

Crucially, the new guidance also outlines that Neighbourhood Boards will have to prove they have listened to and have the backing of residents and their local community to receive all their funding, ensuring that community voices sit at the heart of the decisions made about the future of their areas.

Any resident with big ideas and a desire to transform their community can get involved, with boards being chaired by an independent member of the community, chosen for their ambition and potential to lead their community.

Local authorities and MPs in Pride in Place neighbourhoods will now begin to work with their communities to pick the right chair to take the reins of their Neighbourhood Board, lead on engagement with the community, and drive forward the changes they want to see.

Those interested in getting involved should contact their local MP or Local Authority.

Financial inclusion ‘must not be box-ticking exercise’: inquiry launched

Westminster’s Treasury Committee has launched a new inquiry into the UK Government’s Financial Inclusion Strategy.

MPs will examine whether the Government understands the true scale of the challenge of addressing financial exclusion, as well as what steps must be taken to make a meaningful difference to people’s lives. 

It will also consider the effectiveness of current measures, such as banking hubs, and explore whether further interventions may be needed to improve financial inclusion in the future. 

This follows the Committee’s report on whether organisations should be forced to accept cash, which was published earlier this year.

In its report, the Committee concluded that a lack of action from the Government to tackle declining cash acceptance could lead to a two-tier society with the most vulnerable bearing the cost.

Chair of the Treasury Committee, Dame Meg Hillier, said: “The Government has set out its stall on improving financial inclusion in this country, so now the Committee will have a closer look at whether it’s likely to make a meaningful difference to people’s lives. 

“Improving financial inclusion must not be a box-ticking exercise. Words must lead to action.

“The Treasury must have a strategic vision, supported by concrete, integrated plans with clear methods for measuring their impact, and they must work closely with the private sector on this. My Committee will work to ensure that happens.”

Westminster update on the Employment Rights Bill

Agreement reached with key stakeholders on the unfair dismissal elements of the Employment Rights Bill

ANOTHER MANIFESTO PLEDGE DITCHED?

The UK Government convened a series of constructive conversations between trade unions and business representatives. On the basis of the outcome of these discussions, the Government will now move forward on the issue of unfair dismissal protections in the Employment Rights Bill to ensure it can reach Royal Assent and keep to the Government’s published delivery timeline.  

This will mean delivering day one rights to sick pay and paternity leave in April 2026 as well as launching the Fair Work Agency. Reforms to benefit millions of working people, including some of the lowest paid workers, would otherwise be significantly delayed if the Bill does not reach Royal Assent in line with our delivery timetable. Businesses too need time to prepare for what are a series of significant changes.  

The discussions concluded that reducing the qualifying period for unfair dismissal from 24 months to 6 months (whilst maintaining existing day one protection against discrimination and automatically unfair grounds for dismissal) is a workable package. It will benefit millions of working people who will gain new rights and offer business and employers much needed clarity.

To further strengthen these protections, the Government has committed to ensure that the unfair dismissal qualifying period can only be varied by primary legislation and that the compensation cap will be lifted.  

As a result of these constructive conversations, tabling of the necessary amendments, and a commitment by the Government to a robust process to ensure full, fair and transparent consultation and discussion on the detail and application of the secondary legislation, businesses and unions agree that the Bill can progress.

This will enable the Government to deliver the necessary consultations and implementation in line with its timetable and manifesto commitments to Make Work Pay.  

The Government was pleased to facilitate these discussions and to set an example of the benefits of working together, and remains committed to continue engaging with trade unions, business and employers to make working lives better, support businesses and, vitally, deliver economic growth and good job creation.

The Government is particularly aware of the need to support small businesses in the effective adoption of these changes. Constructive dialogue and full consultation with business, employers and unions will continue beyond the passage of the Bill.

The TUC said: ‘Government will reduce the qualifying period for full protection from unfair dismissal from two years to six months. There’ll also be no statutory probation period.

“The Employment Rights Bill is essential to better quality, more secure jobs for millions of workers. The absolute priority now is to get these rights – like day one sick pay – on the statute book so that working people can start benefitting from them from next April.

“Following the government’s announcement, it’s now vital that Peers respect Labour’s manifesto mandate and that this Bill secures Royal Assent as quickly as possible.”

Reeves Budget ‘tackles cost-of-living and backs Scottish industry’

Scottish families will benefit from a Budget to cut the cost-of-living, create more high skilled jobs and invest in public services, as the Chancellor reaffirmed her commitment to drive economic growth.

  • Chancellor announces fair deal for working families with removal of two-child benefit cap, energy bill saving and fuel duty freeze 
  • Scottish industry backed by investments in Grangemouth, Greenock, Leith and Fife 
  • Public services backed with extra £820 million for Scottish Government

Rachel Reeves recognised Scotland’s huge £204 billion annual contribution to the UK economy with investments in Grangemouth, Greenock, Leith and Kirkcaldy, and provided long-term certainty to the oil and gas industry to support North Sea jobs and investment. 

Despite wages growing more in the first year of this government than at any point in the 2010s, the Chancellor was clear too many families are still struggling with the cost of living which is why the Budget included a range of measures to cut bills and boost pay packets.   

Saying that the fairest way to help people with the cost-of-living was to cut inflation and increase wages, Reeves announced £150 off energy bills, a fuel duty freeze, and national minimum and living wage rises. 

The Chancellor announced the removal of the two-child limit. 95,000 children in Scotland will benefit from this change. Funded by tackling welfare fraud and long-overdue reforms to the Motability scheme, it will result in the biggest reduction in child poverty at any Budget this century.

The Chancellor’s Budget also ensured that Scottish public services are fairly-funded, with an extra £820 million for public services in Scotland through the Barnett Formula, on top of a record settlement in June.

Secretary of State for Scotland, Douglas Alexander MP said: “This is a Budget which delivers for Scotland – raising children out of poverty and helping tackle the cost of living for working families with action on energy bills.

“Scrapping the two-child benefit cap will lift thousands of Scottish children out of poverty. Funded by raising online gambling taxes and tackling welfare fraud, it will result in the biggest reduction in child poverty at any Budget this century.

“The UK Government has backed Scotland’s public services with an extra £820 million — on top of the extra annual £9.1 billion already committed at the Spending Review.

“The £14.5 million announced for Grangemouth is also vital investment in Scotland.”

Ms Reeves also announced reforms to modernise the tax system, asking those with broader shoulders to contribute more through long-overdue fair reforms.

Backing Scottish industry 

  • £14.5 million will back Grangemouth’s transition to a hub for low carbon technologies as the UK Government cements Scotland’s place as the home of the UK’s clean energy revolution. 
  • A further £20 million for Inchgreen near Greenock will upgrade the port’s dry dock, creating up to 1,750 jobs.  
  • Up to £20 million will transform Kirkcaldy town centre and waterfront, including the creation of ‘Adam Smith Growth Works’, boosting local business and tourism.
  • £25 million will be released following the full sign-off of Forth Green Freeport – spanning Leith, Grangemouth and Fife.
  • To support oil and gas workers, the UK Government is introducing ‘Transitional Energy Certificates’ to manage existing North Sea fields for the entirety of their lifespan, and a new Jobs Brokerage Service – offering end-to-end career transition support.

Tackling child poverty, the cost-of-living and economic inactivity

  • 95,000 children in Scotland will benefit from the removal of the two-child limit. 
  • Raising the National Living Wage by 4.1% and the National Minimum Wage by 8.5% —building on April 2025 increases to the National Living Wage and National Minimum Wage that already directly benefitted 220,000 workers in Scotland. 
  • Uprating Universal Credit Standard Allowance by 6.1%, the first ever permanent real terms increase.
  • Increasing the State Pension by 4.8% from April 2026, directly raising incomes for 1.1 million pensioners in Scotland. 
  • Extending the fuel duty freeze and 5p cut, saving the average car driver £49 next year. 
  • Unleashing talent and opportunity with a Youth Guarantee package. This will include ensuring every eligible 18-to-21-year-old who has been on Universal Credit and looking for work for 18 months in Great Britain will get a six-month paid work placement.

Public services investment 

  • The Budget provides an extra £820 million for the Scottish Government to spend on its priorities such as education and tackling NHS waiting times— on top of the extra £9.1 billion already committed during the Spending Review.   
  • The Scottish Government continues to receive over 20% more funding per person than equivalent UK Government spending across the rest of the UK reflecting the real costs of delivering services across Scotland’s diverse geography, from the Highlands to the central belt.

Holyrood: ‘Chaotic’ UK Budget fails to deliver for Scotland

Finance Secretary responds to Chancellor’s statement

The UK Budget “fails to deliver” for Scotland and will not move the dial on the cost of living for squeezed households, according to Holyrood’s Finance Secretary Shona Robison.

Responding to the Chancellor of the Exchequer’s statement, Ms Robison said: “This Budget has been absolute chaos from start to finish. Westminster has been consumed with leaks, briefings and out and out incompetence – with Scotland left as an afterthought and families left to pay the price.

“We needed a step change from the UK Government with investment in public services, support for jobs and industry in Scotland and serious action on energy bills. Instead, we got a chaotic mess and the increase in funding for the Scottish Government will not even cover half the cost of the employer’s national insurance contributions brought in this year.

“With UK energy bills £340 higher than the Prime Minister promised even after today’s announcement, the UK Government are not even trying to deliver on the their promises. It is insulting to see the UK Government stand up and trumpet a proposed reduction that does not even cover the increase since they came to office.

“It does not come close to meeting the Prime Minister’s pledge on energy bills – they have not even attempted to keep their promises.

“The electric vehicle tax is the wrong decision for motorists, the climate and for Scotland given its disproportionate impact on rural drivers.

“And there is no serious support for jobs and industry in Scotland. The Energy Profits Levy is to remain in place – risking thousands of jobs in Scotland and in the North East in particular. Yet again, Scotland is an afterthought.

“And while the moves on the two child cap are welcome, they are long overdue and the UK Government has been forced into this position by the Scottish Government and other campaigners. And without a simultaneous change to the benefit cap it falls well short of the bold anti-poverty measures we have been calling for from the UK Government.

“But the complete chaos around this Budget gets to the heart of the fact that we should not be leaving crucial decisions around the economy, public finances and household bills in the hands of a deeply incompetent Westminster UK government.  We should take these decisions for ourselves with the fresh start of independence.” 

The impact of the increase Employers National Insurance contributions on public services is forecast to cost the Scottish Government at least £2 billion over the next five years.

Responding to the UK Government’s Budget, Poverty Alliance Chief Executive Peter Kelly said: “The Chancellor’s decision to fully scrap the unjust two-child limit is the right thing to do.

“For eight years, this cruel policy has severed the link between what families across the country need and the support they are entitled to, pushing children into poverty and limiting their potential. Our children deserve better.

“Campaigners across Scotland have been unified in their demand to scrap the two-child limit and we are pleased that the UK Government has listened, sending a strong message that every child in this country matters. The end of this policy must be the starting point of reform which ensures that our social security system truly provides security.

“This decision also frees up money earmarked for the mitigation of the policy in the Scottish Budget. Coupled with the additional £820 million allocated to the Scottish Government in this UK Budget, this will allow further investment in the action we know is needed to meet our child poverty targets, including increases to the Scottish Child Payment.”

Commenting on the UK Government’s Budget response, Debbie Horne, Scotland Policy and Public Affairs Manager for Independent Age said: “The Autumn Budget was an opportunity to address pensioner poverty across the UK. However, the UK Government has sadly missed the chance to take action on an issue that now affects almost two million older people across the UK, including 160,000 pensioners in Scotland. 

“While we welcome the retention of the Triple Lock, this measure alone does not go far enough for older people on the lowest incomes who are living across Scotland in cold homes and with not enough money to live on. 

“We continue to call on the UK Government to increase the Warm Home Discount to ease the burden of escalating bills, to support older private renters by uprating Local Housing Allowance so no one has to make dangerous sacrifices to pay their rent, and to boost income through a comprehensive take-up strategy for entitlements, including Pension Credit. 

“The absence of meaningful action to address later-life poverty will leave many older people on a low income in Scotland feeling forgotten and many will be worried about losing more of it in tax, because of the extension of the freeze on personal tax allowances to 2031, a year longer than was expected. 

“We estimate that without decisive government intervention almost 190,000 pensioners in Scotland could be in poverty by 2040. Worryingly, nothing in this Budget suggests we are being steered away from this frightening outcome.” 

Mary Glasgow, Chief Executive of Children First, Scotland’s national children’s charity said: “We welcome the UK Government’s decision to scrap the two-child limit as outlined in the Office for Budget Responsibility report. This is long overdue and frees up Scottish Government budget for other crucial support for children and families.  

“Poverty has a devastating impact on children’s mental and physical health, development, happiness and ability to learn that can last a lifetime.   

“Both governments must now work together to build on progress and meet the legal target to reduce child poverty in Scotland. Families need a stronger social security offer, for example, through the Scottish Child Payment and whole family support across Scotland to give every family the financial, practical and emotional help they need to tackle the root causes of poverty.  

“Children can’t wait. The Scottish Government must use this opportunity to go further and faster in their stated mission to eradicate child poverty.”  

Children First’s manifesto for the 2026 Holyrood elections calls on the next Scottish Government to deliver a comprehensive offer of whole family support to tackle child poverty and give every family the emotional, practical and financial support they need. 

Read the manifesto here: 2026 Holyrood Election Manifesto | Children First 

Helen Barnard, director of policy at Trussell, said: “Trussell is delighted to see the Chancellor take this bold step which will protect hundreds of thousands of children from growing up facing hunger and hardship. She has listened to the families and food banks across the UK who have been imploring her to act.

“The cruel two-child limit has driven countless families into hardship, forced to turn to food banks to survive. Today’s announcement of its full and swift removal will help ensure all our children have the best possible start in life, ease pressure on public services, and help to boost our economy.  

“This government came to power promising to end the need for emergency food and reduce child poverty. Removing the two-child limit will make a vital and significant contribution towards delivering on those manifesto commitments.

“This move will pull 470,000 children out of severe hunger and hardship by 2027 and ease pressure on food banks throughout the UK.

“The government has built on positive steps in strengthening support for people facing severe hunger and hardship. But this cannot be the end. Food bank need remains well above levels five years ago and many people are still struggling to afford the essentials.

“We need more bold choices to transform lives across our communities.”

The End Child Poverty Coalition commented:

Chancellor’s Budget ‘to build a fairer, stronger and more secure Britain’

The Chancellor will deliver a Budget later today [26 November] that takes the fair and necessary choices to deliver on the Government’s mandate for change.

It will include action to cut NHS waiting lists, cut debt and borrowing, and cut the cost of living to secure a strong future for the country, built on fairness and fuelled by growth.

Action to keep prescription costs under £10 (in England – Ed.), freeze rail fares for the first time in 30 years and increase the National Minimum Wage and National Living Wage by £1,500 and £900 respectively has already been confirmed to put more money in people’s pockets at this Budget.

Investment for 250 Neighbourhood Health Centres (in England – Ed.) has also been confirmed as part of the Chancellor’s commitment to slash NHS waiting lists further and end the postcode lottery of healthcare access.

Ahead of her Budget speech, Rachel Reeves said: “Today I will take the fair and necessary choices to deliver on our promise of change.

“I will not return Britain back to austerity, nor will I lose control of public spending with reckless borrowing.

“I will take action to help families with the cost of living…cut hospital waiting lists…cut the national debt.

“And I will push ahead with the biggest drive for growth in a generation. 

“Investment in roads, rail and energy. Investment in housing, security and defence. Investment in education, skills and training.

“So together, we can build a fairer, stronger, and more secure Britain.”

“GENERATION DEFINING” BUDGET MUST DELIVER FOR WORKERS

Scotland’s largest trade union body has issued a stark warning ahead of the Chancellor’s budget calling on Rachel Reeves to “deliver for workers” as the UK Government sets out, what the STUC call, a “generation defining” budget.


The Scottish Trades Union Congress (STUC) has set out five tax demands ahead of the statement, including actions on wealth taxes, bank profits and a “settling up” tax for those moving wealth and assets abroad.  

The trade union body, as part of the wider Scotland Demands Better campaign, has also reiterated the call to scrap the two child-benefit cap in a move STUC General Secretary Roz Foyer said was “long overdue”.   

The STUC is further calling for increased investment in publicly owned energy as well as direct support for workers in carbon intensive sectors such as those in Grangemouth and Mosmorran.

Commenting, STUC General Secretary Roz Foyer said: “The upcoming statement from the Chancellor is generation defining. It will signal to all whether the UK Government will continue to adhere to self-imposed financial rules and chaotic quick fixes, or whether they will invest in the public services and the industries and jobs of the future, delivering for workers with bold, radical policies to redistribute wealth.

“We’ve set out how the Chancellor can target those with wealth and assets and use it for the public good. For too long Labour Government policy has been about meeting self-imposed fiscal rules rather than setting out a bold plan for public sector-led growth.

“That must change. We must see, once and for all, the long overdue scrapping of the two-child benefit cap in addition to targeted action on reforming Capital Gains Tax. The Chancellor must also reign in the wild-west of banking profits, raising the surcharge from 3% to 35%, potentially netting £50 billion over four years.

“The people of Scotland and the wider United Kingdom voted for change. It’s high time it was delivered and the Chancellor simply cannot afford to waste this opportunity come Wednesday.”

Reeves: £550 boost for millions of pensioners next year

MORE BUDGET DETAILS ANNOUNCED

  • The Chancellor is expected to announce that 13 million pensioners are set to benefit from an above inflation rise to the State Pension next April.
  • Those on the full rate of the new State Pension are set to receive over £550 a year more.
  • Pensions boost comes ahead of the Budget where the Chancellor will take the fair choices to cut NHS waiting lists, cut national debt and cut the cost of living.  

13 million pensioners are set to see their State Pension increase faster than inflation next April thanks to the Government’s commitment to the Triple Lock.

From next April the rate of the full new State Pension is expected to increase to just over £240 a week.

This is an increase worth over £550 a year, an extra £120 compared to what it would have been if it had been uprated only by inflation. The full basic State Pension is expected to rise by around an extra £440 a year.

Tackling the cost of living is at the centre of this week’s Budget, and this announcement comes following government action to freeze rail fares and prescription fees next year saving working families millions of pounds.  Government is also cracking down on ticket touts that will cut costs for music lovers across Britain.

At the Budget the Chancellor will go even further to bring down bills, tackle inflation, and grip the cost of living.

Chancellor of the Exchequer Rachel Reeves said: “Whether it’s our commitment to the Triple Lock or to rebuilding our NHS to cut waiting lists, we’re supporting pensioners to give them the security in retirement they deserve.  

“At the Budget this week I will set out how we will take the fair choices to deliver on the country’s priorities to cut NHS waiting lists, cut national debt and cut the cost of living.”

The government ‘is committed to supporting pensioners’, and this boost will ensure the State Pension remains the foundation of a secure retirement. The Triple Lock guarantees that the State Pension increases annually by the highest of inflation, average earnings growth or 2.5 per cent.

This comes alongside other support for the most vulnerable pensioners through Pension Credit, worth on average £4,300 a year, and Winter Fuel Payments for nine million pensioners in England and Wales with an income of, or below, £35,000 a year.