Chancellor responds to February labour market statistics

Responding to ONS February labour market statistics,Chancellor Jeremy Hunt said:

“In tough times unemployment remaining close to record lows is an encouraging sign of resilience in our labour market.

“The best thing we can do to make people’s wages go further is stick to our plan to halve inflation this year”.

Additional information:

·  Unemployment is higher in Canada, France, Italy, Spain, and the Euro area.

·  Employment is lower in the US, France, Italy, Spain and the Euro area.

·  The government is committed to halving inflation this year, reducing debt and growing the economy.

·  The unemployment rate remains low (3.7%) by historical standards.

·  There were over 30 million employees on payrolls in January 2023, over a million above pre-pandemic levels.

·  As set out at the Autumn Statement, the Department for Work and Pensions will thoroughly review workforce participation to understand what action should be taken on increased economic inactivity, which will conclude in early 2023.

·  Monetary policy is the responsibility of the independent Bank of England. The government remains fully committed to the Bank’s independence, and the inflation target of 2%.

·  In addition to the Energy Price Guarantee this winter, which is saving the average household £900 on energy bills, the government provided £1200 worth of support to the most vulnerable households for 2022-23: 

• £650 in cost of living payments;
• £400 through the Energy Bill Support Scheme;
• £150 Council Tax rebate;
• Additional support for pensioners and those claiming disability benefits.

·  The government has announced further support on the cost of living in 2023-24, targeted at those most in need: 

• UK households on means-tested benefits will receive a further £900 Cost of Living Payment;
• Pensioner households across the UK will receive an additional £300 Cost of Living payment;
• People across the UK on non-means-tested disability benefits will receive a further £150 Disability Cost of Living payment, to help with the additional costs they face.

·  We have extended the Household Support Fund for another year in England, with £1 billion of extra funding (including Barnett funding for the devolved administrations).

·  The government has introduced changes to the Energy Price Guarantee (EPG), building on the measures already announced which provided much needed support to domestic and non-domestic users. The action taken on Energy support at the Autumn Statement will reduce the fiscal impact of the package whilst saving the average UK household £500 in 2023-24 from a £3000 Energy Price Guarantee.

Rachel Reeves MP, Labour’s Shadow Chancellor, responding to today’s labour market statistics, said:

“Britain has huge potential – but 13 years of the Tories has left real wages down, families worse off, and our economy lagging behind on the global stage.

“The government needs to stop sitting back and following this path of managed decline.

“Labour will get people back into work, with our real plan for growth to create good, new jobs across every part of our country.”