On Wednesday 22nd November 2023, the Chancellor of the Exchequer, Jeremy Hunt delivered the Autumn statement to Parliament.
In his opening statement, the Chancellor highlighted the decisions made by the government to curb inflation and get the economy back on track.
He announced the government’s main five priorities: reducing debt, cutting tax and rewarding hard work, backing British business, building domestic and sustainable energy, and delivering world-class education.
Let’s look at the key points from the 2023 Autumn statement:
- The main rate of Class 1 employee National Insurance contributions (NICs) will be cut from 12% to 10% as of 6th January 2024. This will mean an employee paying basic rate tax will pay just 30% of their earnings in tax and NICs – the lowest rate since the 1980s.
- It’s also good news if you’re self-employed – the main rate of Class 4 self-employed NICs will be cut from 9% to 8%. Class 2 self-employed NICs will be abolished.
- As of April 1st 2024, the National Living Wage will increase from £10.42 per hour to £11.44 per hour. The age threshold will also drop from 23 and above to 21 and above. This means those aged 21 and over will be entitled to the National Living Wage.
- National Minimum Wage for those aged 18 to 20 will rise to £8.60ph (from £7.49ph), while the rate for apprentices and those under 18 will increase from £5.28ph to £6.40ph.
- The State Pension will rise by 8.5% in line with average earnings growth. This means that from April 2024, State Pension will be £221.20 a week (for those who reached State Pension age after April 2016) or £169.50 a week (for those who reached State Pension age before April 2016).
- Universal Credit and a range of other benefits will increase by 6.7% in line with September’s inflation figure.
These are the main measures the government will introduce over the course of the next few months, in a bid to ease the pressure on millions of households across the UK.
What are your thoughts? Do you welcome these changes? Would you have liked to see more?
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