AUTUMN STATEMENT AND HELP AVAILABLE
Several constituents have contacted me with their concerns about the cost of living, and the measures that are in place from the government to help.
The Autumn Statement was balanced - it ensures that those with the broadest shoulders pay the greater share of the cost of getting our economy back on track and at the same time that the vulnerable, the elderly and those on the lowest incomes will be able to get through the next few months as we face unprecedentedly high inflation.
The Chancellor has been clear about the scale of the economic challenge facing the UK and I welcome that he has taken tough but fair decisions to restore economic stability, tackle inflation, and help vulnerable households with the cost of living.
To help households, the Chancellor has extended the Energy Bills Support scheme until 2024 and there will be further help for those on means tested benefits and for pensioners. From April, the Energy Price Guarantee will be kept for a further 12 months at a higher level of £3000 per year for the average household. With prices forecasted to remain elevated through next year, this will mean an average of £500 support for every household in the country.
It is right that companies that have made genuine windfall profits as a result of high energy prices following the war in Ukraine pay their fair share towards the support the Government is providing. The government is therefore increasing the Energy Profits Levy from 25 to 35 per cent from 1 January 2023 and extending it to 2028.
I welcome the Chancellor’s decision to increase pension credit and benefits by 10.1% in line with inflation, worth up to £1470 for a couple and £960 for a single pensioner in the most vulnerable households. The Triple Lock will be protected and in April 2023, the state pension will increase in line with inflation by £870.
The Chancellor has also given a pay rise to millions of low paid workers worth £1,600 a year by increasing the National Living Wage by 9.7 per cent.
Spending will be increased to address NHS and social care pressures in 2023/24 and 2024/25 including: £3.3 billion for the NHS in England each of 2023/24 and 2024/25, in response to financial pressures and to improve performance and £1 billion in 2023/24 and £1.7 billion in 2024/25 to help get people out of hospital and into social care, through the Better Care Fund and a ringfenced adult social care grant to local authorities.
And additionally, the core schools budget will be increased by £2.3 billion in England in each of 2023/24 and 2024/25.
The Chancellor was clear that everyone will need to pay slightly more in tax to help restore the public finances, but I welcome his determination that the burden will fall on those with the broadest shoulders. The threshold of the 45p rate of income tax has been reduced from £150,000 to £125,140, meaning that someone earning over £150,000 per year will pay an extra £1,200 in tax.
Headline rates of tax for those in work will not increase, however, income tax thresholds will be frozen by a further two years, until April 2028, as will thresholds for National Insurance and inheritance tax.
If you are a constituent and have questions about the Autumn Statement and the help that is available please do not hesitate to contact me.
