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Chancellor Jeremy Hunt delivered his Autumn Statement on Thursday (November 17), outlining plans designed to tackle rising prices and restore the UK’s credibility with international markets.
Here are some of the key announcements:
Energy support given by the government will remain in place but will go down starting in April. It means the average annual household bill is expected to rise from £2,500 to £3,000 from April 2023.
There will be more targeted support next year that will amount to £900 for households on means-tested benefits, £300 for pensioner households, and £150 for those on disability benefits.
Those using heating oil will receive a payment of £200 this winter, rather than £100 as previously planned.
Pay is rising
The government is increasing the National Living Wage to £10.42 in April next year. Currently, the minimum pay rate for those aged 23 and above – the National Living Wage – is £9.50 an hour.
From April, the income at which the highest earners start paying the 45% top tax rate is being lowered from £150,000 to £125,140.
You start to pay income tax on annual earnings of more than £12,570, charged at 20%. You then pay tax of 40% on earnings over £50,270 a year, although the bands are different in Scotland.
These bands – or tax thresholds – had already been frozen until 2026, rather than going up in line with prices as you might normally expect. The chancellor has now extended that freeze for a further two years.
State pension rise
The state pension will rise by 10.1% from April, in line with September’s inflation rate.
Tax for electric cars
Electric vehicles will no longer be exempt from Vehicle Excise Duty from April 2025.
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