Today, Chancellor Jeremy Hunt announced the government’s Autumn Statement. There were a whopping 110 measures put forward all with the aim to “help grow the economy”. The Autumn Statement is a set of proposals which lay out the government’s tax and spending plan. It covers many financial topics including minimum wage, funding, benefits, and tax. This will affect everyone in the UK.
We’ve put together a quick, handy, no-nonsense guide explaining the key takeaways from the newest Autumn Statement.
Increase in Minimum Wage UK
Minimum wage will increase by 9.8% from April next year. This means the minimum hourly rate for over 23s will rise from £10.42 an hour to £11.44.
For the first time, 21-22 year olds will also be included, meaning there will be a 12.4% jump in their hourly wage.
This is to keep up with the cost of living and rising bills.
Clamp down on benefits
Jeremy Hunt announced that there will be stricter rules around job seeking and benefits. New rules will mean that if a claimant of Universal Credit is still unemployed after 18 months, they will have to take part in a mandatory work placement.
If the claimant refuses to engage with the work placement, then their benefits will cease altogether.
Universal Credit and disability benefits to increase
Despite stricter rules around the entitlement of benefits, they are still set to increase. Universal credit and disability benefits will increase by 6.7%, in line with September’s inflation rate. This is after UK ministers announce a new policy to force disabled and mentally ill workers to work from home or lose benefits.
National Insurance will be lowered
National Insurance will decrease from 12% to 10% from 6th January 2024. This means the average working person will have less outgoings in NI tax per month and more disposable income.
Hunt said the change will benefit “27 million people and means someone on the average salary of £35,000 will save over £450 a year.” The chancellor will introduce urgent legislation to make this possible for January.
Tax removed on period pants
Tax on period pants will be abolished. The underwear has seen a rise in popularity as more and more people are looking for sustainable alternatives for menstrual products.
As an advocate for women’s economic well being and health, The Women’s Organisation are glad the tax has been abolished. This will make period pants more affordable for women, especially during the cost of living crisis.
Class 2 National Insurance to be abolished
Jeremy Hunt announced Class 2 National Insurance will be scrapped completely. Self employed people earning more than £12750 are currently charged £3.45 a week in NI. Abolishing this will save the average self-employed person £192 a year.
Are are feeling stressed about money? Are you struggling with the cost of living? Worried about your entitlement to benefits after the new Autumn Statement? Our Mind and Money programme is there to help residents of the Liverpool City Region with money management, debt relief, and financial resilience. Contact us today through community@thewo.org.uk.
