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The Autumn Statement is made by the Chancellor of the Exchequer in the House of Commons. It includes a review of the nation’s finances and economic situation as well as changes proposed by the government.
Here are some of the key announcements from the Autumn Statement that may affect you:
The National Living Wage (known as the minimum wage) is to increase across all parts of the UK. The new rates vary depending on the age of the employee.
From 1 April 2024, the rates will rise to:
This would mean a full-time worker aged 23 earning the National Living Wage would receive an annual pay rise worth £1,800 a year. And a 21-year-old in full-time work and earning the National Living Wage would receive a £2,300 annual rise.
From 6 January 2024, National Insurance contributions for employees will be cut from 12% to 10%.
The government said this would help 27 million people and means the average worker on a salary of £35,400 will save over £450 a year.
The amount of National Insurance you’ll need to pay depends on your employment status and how much you earn. Visit GOV.UK to find out more.
Universal Credit and disability benefits will increase by 6.7% in 2024, in line with September's inflation rate.
The government said there will be targeted support with the cost of living for those on low incomes and disability benefits. Meanwhile, those still looking for a job after 18 months out of work may be required to accept a mandatory work placement under a new initiative to be rolled out in 2024.
The Local Housing Allowance rate will increase to help those on benefits pay their rent to a private landlord. This will give 1.6 million households an average of £800 in support in 2024.
For more information about government support, including eligibility and how it affects you, visit GOV.UK: Help for Households.
The Triple Lock will be protected, meaning pensioners will also get a rise in the State Pension and the Pension Credit in line with inflation.
From April 2024, the government will increase the full new state pension by 8.5% to £221.20 a week – worth up to £900 more per year.
At Spring Budget 2023, the government announced that it would abolish the lifetime allowance (LTA). From April 2023, the LTA charge was removed.
The Autumn Statement confirms that, from April 2024, the LTA will be abolished entirely and also clarifies the tax treatment of certain pension payments.
To protect businesses from rising inflation, the multiplier is frozen for a further year until April 2025.
The government will also extend the 75% discount on business rates (up to £110,000) for retail, hospitality and leisure businesses for another year.
It said these measures will save the average independent shop over £20,000 and the average independent pub over £12,800 in 2024.
‘Class 2’ National Insurance (a charge for self-employed people earning more than £12,570) will be abolished in April 2024. This will save the average self-employed person £192 a year.
‘Class 4’ National Insurance will also be cut from 9% to 8% in April 2024.
These measures will save around 2 million self-employed people an average of £350 a year from April 2024.
The duty on all alcohol, including beer, cider, and wine, is frozen until 1 August 2024. This is part of the ‘Brexit pubs guarantee’, which aims to help support British pubs.
Many people are eligible for government support but don’t realise it. You may think you need to be out of work to claim anything – but that’s not the case.
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The information in this article was last updated on Wednesday 22 November 2023.
