Thank you to those who contacted me about public sector pay.
I am grateful for the commitment and selflessness of public sector workers who have kept people safe and ensured vital services could continue through the pandemic. Their work has been exemplary. This Government wants to ensure that it continues to attract the best and brightest to work for the Civil Service, and that it rewards hard working staff fairly.
That is why I am glad the Spending Review 2021 announced that public sector workers will see pay rises over the next three years as the recovery in the economy and labour market allows a return to a normal pay-setting process. As I understand it, the Government will be seeking recommendations from Pay Review Bodies where applicable.
For those in roles not covered by Pay Review Bodies, updated Civil Service Pay Remit Guidance for 2022/23 has now been published. This year's guidance sets out that Civil Service organisations are able to make pay awards of up to 3 per cent. They will have freedom to pay average awards up to 2 per cent, with a further 1 per cent to be targeted at specific priorities in their workforce and pay strategies.
I understand anxiety over rising prices and inflation. I want to assure you that my ministerial colleagues will continue to listen and to ensure that the policies in place do help those who need it most - Government support for families will be worth over £22 billion in 2022-23.
A rise in the National Living Wage will mean an extra £1,000 in the pockets of millions of people. The Government has also cut the Universal Credit taper rate and increased work allowances - which represent an effective tax cut for low income working households in receipt of UC worth £2.2 billion in 2022-23.
Furthermore, I welcome that the National Insurance personal threshold will rise further from £9,500 to £12,570 from July 2022. This will bring it in line with the equivalent Income Tax personal allowance and represents the largest increase in a personal tax threshold in British history, equivalent to a £6 billion tax cut for nearly 30 million workers and worth over £330 a year starting in July, across the entire UK. This represents the largest single personal tax cut in a decade.