Thank you for contacting me about poverty in the UK.
I note the concerns raised by the Joseph Rowntree Foundation, and would like to assure you that] The Government remains committed to reducing poverty and supporting low-income families. The Government will spend around £276 billion through the welfare system in Great Britain in 2023/24, including around £124 billion on people of working age and children.
As the report you mention notes, people in workless households face a far greater risk of poverty. For this reason, supporting people into work and is at the heart of the Government's approach to tackling poverty. At the Spring Budget 2023, the Chancellor announced an ambitious package of measures designed to support people to enter work, increase their working hours, and extend their working lives. This package will be complemented by reforms made to the welfare system. As set out at Autumn Statement 2023, the Government's Back to Work Plan will transform the way people interact with the welfare system, ensuring that it provides a springboard for those capable of work.
To further support those who are in work, from 1 April 2023 the National Living Wage (NLW) was increased by 9.7 per cent to £10.42 an hour for workers aged 23 and over - the largest ever cash increase for the NLW. Additionally, from April 2024, the NLW will increase to £11.44 an hour, boosting the annual earnings of a full-time worker on the NLW by over £1,800.
Additionally, to ensure that people keep more of what they earn, the main rate of Class 1 employee National Insurance contributions will be cut from 12 per cent to 10 per cent from January 2024. The Government is also taking action to support the self-employed, abolishing Class 2 NICs and reducing the main rate of Class 4 NICs from 9 per cent to 8 per cent.