The Autumn Statement landed yesterday (Nov 17), but millions of people around the country will be wondering what the real world impact will be on their finances. Although there were a few sops with cost of living payments, the UK is facing the biggest tax burden for many years - and headlines this morning reflected the grim nature of what Brits can expect, including ‘you’ve never had it so bad.’
Nottinghamshire Live has created an online calculator which will look at some of the big decisions made by the Chancellor and how it impacts on you if you enter some information. It will tell you what the impact is likely to be on your income and what you pay out.
Jeremy Hunt told the Commons yesterday that as of April 2023, the Minimum Wage will rise by 9.7 per cent - coming as a much-needed boost for around two million low-paid workers. The National Living Wage, which currently sits at £9.50 per hour for those aged 23 and over, will be raised by 92p to £10.42 from April next year.
Read more: Autumn Statement: Key change for 600,000 on universal credit announced
The minimum wage per hour paid to those between 21 and 22 will rise from £9.18 to £10.18. Also, from £6.83 to £7.49 for those aged 18 to 20, and from £4.81 to £5.28 for under-18s and apprentices.
But income tax thresholds were again frozen meaning real terms pay cuts for millions around the country, with inflation topping 11 per cent. Those on the highest incomes were hit by a reduction to the threshold for paying the top 45p rate of tax from £150,000 to £125,140. The Personal Allowance tax rate on which people pay zero per cent tax is frozen at £12,570 the Basic rate of £12,571 to £50,270 where 20 per cent is paid again remains the same as is the Higher rate £50,271 to £150,000 where people pay 40 per cent.
Our calculator below shows how the Minimum Wage is set to change. As well as how much more you could potentially end up forking out on energy bills.
Meanwhile, energy bills will rise to £3,000 a year for the typical household from April - up from £2,500 now. Disability and working age benefits will be increased in line with inflation. Older people are heading for a 10.1 per cent increase to the state pension from next April, after Mr Hunt confirmed the triple lock is being protected.
Mr Hunt said the Government will fulfil its pledge to protect the triple lock, meaning that the state pension will increase in line with inflation. The full new state pension is currently £185.15 per week – so a 10.1 per cent increase would push that figure up to £203.85.
Jeremy Hunt said he is “not guilty” of bottling the difficult decisions by putting off cuts until after the next general election. The Chancellor told BBC Breakfast: “I mean you can accuse me of many failings but looking at the front pages of the newspapers today, to say we have ducked any of the difficult decisions facing the British economy is the one charge we are not guilty of.”
Shadow chancellor Rachel Reeves has accused the Government of “pickpocketing” ordinary working people before calling the reduction in bank surcharges a “big mistake”. Speaking to ITV ’s Good Morning Britain, Ms Reeves said different tax choices “could’ve eased some of the pressure on ordinary working people which saw their pockets picked yesterday with a whole range of stealth taxes and council tax increases at the same time that their income is already being eroded by double-digit inflation”.
Asked what tax decisions Labour would have made differently, she told the programme: Yesterday the Chancellor reduced the surcharge on banks at a time when banks are making record profits, he reduced that from eight per cent to three per cent – that was a mistake. We should be asking our banks to pay their fair share of tax, especially at the moment when our public finances are in such a mess because of previous decisions by Conservative governments.”
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