What does the Autumn Statement mean for you?

The Chancellor, Jeremy Hunt, announced the Autumn Statement yesterday. We were told to prepare for a couple of tough years ahead and the statement spelled out record tax rises for near enough everyone. We take a look at the main points and see what the Autumn Statement means for you.

Autumn Statement: main points

• From April 2023, the government will continue the Energy Price Guarantee for a further 12 months at a higher level of £3,000 per year for the average household, up from £2,500 at present
• An extra £900 of energy bill support will be provided to households on means tested benefits, £300 more will be given to pensioners and £150 will be given to those on disability benefits
• The pensions triple lock will be kept
• The National Living Wage will rise by 9.7% to £10.42 per hour
• Benefits will rise in line with September’s inflation rate, which was 10.1% and the cap will be increased in loine with inflation next year
• Income tax personal allowance, higher rate threshold, national insurance thresholds and inheritance tax thresholds will be frozen until April 2028
• 45 pence tax rate will become payable at £125,140 rather than the current level of £150,000
• The dividend allowance will be cut from £2,000 to £1,000 in April 2023 and then to £500 from April 2024
• The annual exempt amount for capital gains tax will be cut from £12,300 to £6,000 in April 2023 and then reduced further to £3,000 in April 2024
• Windfall taxes on energy companies are being increased – their energy profits levy will increase from 25% to 35% from 1st January 2023 to March 2028
• The NHS budget will increase by an extra £3.3 billion each year for the next two years
• Social care funding will increase by £2.8 billion next year and £4.7 billion the following year

Our thoughts on the Autumn Statement