Chancellor Hunt's 2023 Autumn Statement reveals a £7 billion 'back to work' plan, featuring an increase to the National Living Wage (NLW) and personal tax cuts.
The key points include:
National Living Wage surge
- The NLW will jump from £10.42 to £11.44 per hour in April 2024, the largest increase since the rate was introduced in 2016.
- The age threshold for the NLW also lowered from 23 to 21, benefiting younger workers.
- Following an 18% increase in company insolvencies in October 2023, concerns arise over the potential strain on businesses.
National Insurance cuts
- Around 27 million people stand to benefit from a 2% cut to Class 1 National Insurance.
- The measure will be effective from paydays on or after 6 January 2024, providing workers with a maximum saving of £754.
Benefits and pensions changes
- Universal Credit and welfare benefits increase by 6.7% alongside controversial rule changes for benefits claimants.
- The Government stuck to its commitment to the 'triple lock' pension, ensuring an 8.5% state pension increase next April.
Housing and self-employed support
- Local housing allowance covers 30% of market rents, benefiting 1.6m households.
- Self-employed individuals benefit from the abolition of Class 2 NI and a reduction in Class 4 NI from 9% to 8%.
Tax digitalisation phased introduction
- It's now been confirmed that those with income under £30,000 will not be brought into Making Tax Digital for income tax self-assessment (MTD for ITSA) for now.
- Thresholds under review for potential future adjustments.
The Autumn Statement outlines a comprehensive strategy to boost the economy, with a focus on job creation, wage increases and support for businesses and individuals.
Talk to us about the Autumn Statement.