The Autumn Statement provides an update on the government’s plans for the economy based on the latest forecasts - quite often it is seen as a mini budget.

In today’s Autumn Statement, Jeremy Hunt has announced a number of changes that could mean individuals may well be able to access more money - a welcome relief from the higher costs of the last couple of years.

A summary of the changes can be found below:

National Living Wage

This is increasing to £11.44 per hour - a rise of £1.02

What could the announced changes mean for you?

The National Living Wage applies to all workers aged 23 and over, and is a higher rate than the minimum wage which applies to people under the age of 23.

Employee National Insurance

The main rate of National Insurance paid by those working is being cut from 12% to 10% with the plan to bring this in from January 2024.

What could the announced changes mean for you?

Someone earning £35,000 a year will save £400 a year.

Rent

The Local Housing Allowance will increase - this has been frozen since 2020.

What could the announced changes mean for you?

1.6m households will receive, on average, an extra £800 in rent support next year. The Local Housing Allowance helps people on benefits pay their rent to a private landlord.

Benefits

These will increase next year by 6.7%, the inflation rate for September 2023.

What could the announced changes mean for you?

This applies to working-age and means tested benefits such as Universal Credit and disability benefits. If you receive these benefits then the amount you receive will increase.

Lower National Insurance for those self-employed

National Insurance has also been reduced for those who are self-employed.

What could the announced changes mean for you?

If you are self-employed earning more than £12,570 , Class 2 National Insurance contributions have been abolished, and Class 4 contributions have been reduced.

If you are self-employed then this saving will be worth about £300/year.

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Remember the content provided in this article is for information purposes only and should not be considered as advice.