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What does the budget mean for me?

Chancellor Jeremy Hunt says his priorities are stability, growth and public services.

Josie Clarke
Thursday 17 November 2022 10:13 EST
The national living wage will rise by 9.7% next year to £10.42 an hour (PA)
The national living wage will rise by 9.7% next year to £10.42 an hour (PA) (PA Wire)

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Jeremy Hunt says the Government will deliver a plan to tackle the cost-of-living crisis and rebuild the UK economy.

The Chancellor says his priorities are stability, growth and public services, and he is providing “fair solutions” despite taking “difficult decisions”.

Here is what it means for you.

– Workers

The national living wage will rise by 9.7% next year to £10.42 an hour.

– Taxpayers

The Chancellor announced a range of tax threshold freezes, including for income tax and inheritance tax for a further two years, on top of an existing four-year freeze, to April 2028.

The threshold for the 45p additional rate of tax will be cut from £150,000 to £125,140.

– Those on benefits

Disability and working age benefits will be increased in line with inflation.

Such benefits will rise by 10.1% from April in line with the rate of inflation in September, at a cost of £11 billion.

Mr Hunt also said he is concerned about a “sharp increase in economically inactive working-age adults” since the start of the pandemic, announcing a review into the issues holding people back from work.

More than 600,000 people on universal credit will be asked to meet a work coach “so that they can get the support they need to increase their hours”.

– Pensioners

Older people are heading for a 10.1% 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% increase would push that figure up to £203.85.

For those on the full, old basic state pension, who reached state pension age before April 2016, the increase means a weekly rise from £141.85 to £156.20.

Families in social housing

The Chancellor has said he will cap the increase in social housing rents at a maximum of 7% in 2023/24, saving the average tenant £200 next year.

Mr Hunt said that without the cap, families living in the social rented sector could face rent hikes of up to 11%.

– Billpayers

Help with energy costs has been extended for all households, but at a less generous level, meaning millions will still face higher bills.

The energy price guarantee will continue for a further 12 months from April, but will rise from the current £2,500 to £3,000 per year for the average household.

The Chancellor announced new one-off payments of £900 to households on means-tested benefits, £300 to pensioner households, and £150 for individuals on disability benefit.

There will be an additional £1bn funding to enable further extension to the household support fund.

The Chancellor said he will double investment in the energy efficiency of homes and industry by £6bn from 2025.

– Drivers

Electric vehicles will no longer be exempt from vehicle excise duty from 2025.

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