The government has recently taken further action to ease the cost of living having frozen rail fares, prescription fees and uprated the Triple lock.
Issued 25 November 2025
- The cost of living is the number one issue for working people and the government will always take action to ensure people have more money coming in.
- That is why the government has accepted the recommendations of the LPC to increase the National Living Wage and National Minimum Wage.
In a video message posted today, the Chancellor of the Exchequer, Rachel Reeves said:
I know that the cost of living is still the number one issue for working people and that the economy isn't working well enough for those on the lowest incomes.
Too many people are still struggling to make ends meet.
And that has to change.
That's why today I'm announcing that we will raise the National Living Wage and also the National Minimum Wage, so that those on low incomes are properly rewarded for their hard work.
These changes are going to benefit many young people across our country, getting their first job and I'm pleased to be here at Primark talking to workers about these announcements.
These changes mean that from April, the National Minimum Wage and the National Living Wage will boost the pay packets of around 2.7 million workers.
For a full-time worker on the National Living Wage, that means an increase in pay of £900 a year.
And for someone on the National Minimum Wage, working full time, it will mean a £1500 increase.
We also need to support businesses while protecting jobs and the economy.
And that's why we've secured trade deals with the US, with the EU, and with India.
It's why we're committed to economic stability.
To help interest rates fall further.
It is why we have capped corporation tax, and why we're reforming business rates, particularly so that they help the high street.
In this week's Budget, I'm going to deliver our mandate for change, and I'm determined to cut the cost of living for everyone.
