Increases to public sector pay and minimum wage will not prevent cost of living crisis

With an increase to the minimum wage and the end of a public sector pay freeze, it seems clear that the chancellor is seeking to present himself as the friend of ordinary working people.

Around 2 million citizens on minimum wage will see a 6.6 per cent increase in their pay, which will go up to £9.50 next year. Up to 5 million more public sector workers are also in line for a pay increase in 2022 after a year-long freeze.

But the announcements expected to be made in the Budget this week should be put into context.