Money saving expert Martin Lewis has reacted to the Autumn Statement after chancellor Jeremy Hunt announced tens of billions of pounds of tax rises and spending cuts. Although the financial guru welcomed the 10.1% increase in benefits and state pension, he said it would be "difficult" for the "squeezed" middle, as many won't be eligible for a majority of the support announced.
On Thursday Martin shared Twitter updates on Chancellor Jeremy Hunt's budget as it happened. He wrote: "I am very pleased that both benefits and the state pension are being increased by the 10.1% September inflation rate. "It only happens from next April, and it will still be hard for many, but if it was less than this it would've been devastating."
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It comes after Mr Hunt announced pensions and Universal Credit would would be raised to match inflation. A 10.1% rise - costing £11bn - will likely take the New State Pension up by £18.70 a week, from £185.15 to £203.85. The rise will be worth £870 over the year, The Mirror reported.
It will take the standard allowance in Universal Credit for a single person over 25 from £335 to £369 a month. The average family on the benefit will benefit by around £600, Mr Hunt said.
Speaking shortly after on Radio 4's World at One, Martin said it "certainly looks like help has been put in place for those on the lowest incomes". However, he added it would be "difficult for those in the 'squeezed middle' - especially when it comes to energy costs.
He said: "They won't get any help apart from the Energy Price Guarantee." Later, in a 10 minute video on his Twitter channel, Martin added: "The energy price guarantee lasts until the end of March 2024. But we will see another rise - on typical use, you go up from £2,500 a year to £3k a year. It's very early days.
"They are consulting on moving to a social tariff system. It means the most vulnerable will be put on a cheaper tariff...There was little said but Support For Mortgage Interest for those who've lost jobs is set to be claimable after three months - not nine months.
"I met with Jeremy Hunt, I pushed hard and he'll call banks to a summit so we can talk flexibility and forebearance before spring, so we can help people. I will be there."
Mr Hunt announced that The Energy Price Guarantee - a state subsidy applied to all energy bills - will run until the end of March 2024. Martin responded to say those on middle incomes wouldn't get the extra cost of living payments worth up to £1,350 to help towards the rise in energy costs. This includes £900 to households on certain means-tested benefits, including Universal Credit, Tax Credits and Pension Credit.
Martin gave particular praise to the improved support announced for those who are struggling to pay their mortgage because they've lost their job - something Martin said he'd pushed "for a long time". Previously the government would cover the interest on your mortgage if you have not been earning for nine months, while now you only have to be out of work for three months to be eligible.
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