A guide to the 2022 Autumn Statement and how it could affect you
The Chancellor has announced his Autumn Statement, and it’s no surprise that the rising cost of living and energy bills featured strongly in this mini budget.
You may be catching up on the news and asking ‘what does this autumn budget mean for me and my finances?’ Here’s our quick guide to some of the most important announcements in the Chancellor’s speech.
Energy bills will go up
Help for energy bills will continue, but the amount of financial support available will be less, after March 2023.
This means millions of households will see their energy bills go up by hundreds or thousands of pounds a year from April.
The average household will pay £3,000 a year, up from £2,500, as the Energy Price Guarantee rises.
The Chancellor also announced that the support for alternative fuels is being doubled this winter to £200. This means people who use heating oil will receive a higher payment.
A recent poll for CAP of over 2,000 people found that half of those questioned said their bills had gone up by between £101 and £500 per month.
If you’re worried about rising energy bills you might find it useful to read about the energy price guarantee and saving gas at home.
What cost of living help is in the autumn statement?
More targeted support to help with the rising cost of living was announced for 2023, to help pensioners as well as those on low incomes or disability benefits. In many ways this support is similar to that received in 2022.
There will be cost of living payments in 2023 of £900 for everyone on means-tested benefits, plus £150 for people on disability benefits and £300 for pensioner households. Unlike in 2022, there will be no payments for all households, such as the £150 council tax rebate for most households and £400 energy bill support scheme for everyone.
This comes after new official figures showed yesterday that inflation, the rate at which prices rise, has hit a 41-year high, largely driven up by energy, food and fuel costs.
If you’re struggling with rising costs, it’s a good time to check whether you could be receiving more financial support from the government. Use our benefits calculator to see what you’re entitled to.
How will my personal finances be affected?
From April 2023, the National Living Wage will increase from £9.50 an hour for over-23s to £10.42. It’s normal for the National Living Wage to increase every year in April, and this is predicted to boost the pay of about two million people.
State pension payments and means-tested and disability benefits will increase in April 2023 by 10.1%, in line with inflation. The benefit cap will also increase in line with inflation. In Scotland, the Scottish Government has promised to mitigate the benefit cap.
There’s no change to income tax rates, but the 45p threshold is being reduced and others are being frozen. Freezing the thresholds while people’s wages increase with inflation, means in practice that many people will be paying more tax than before.
