Jeremy Hunt Autumn Statement RECAP: I’m £2,147 better off with pensions increase & wage boost – but I’m still worried
BRITS are starting to feel the squeeze of recession despite the Chancellor unveiling new measures to protect Britain's poorest.
In his this week, hiked pensions and benefits by 10.1 per cent, as well as lifting the National Living wage to £10.40 - but there will be hidden costs for many Brits.
Supermarket worker Alan Lunn, 71, earns the national living wage, which will go up in April by 92p an hour and give him an extra £855 a year - but the tax threshold freeze will cost him £247 despite being £2,147 better off.
He said: “That’s really, really good. The only thing that blunts it for me is my two-year fixed deal on my utilities runs out in July.
“My bills will probably double, which will likely cost an extra £80 per month. It’s more than I hoped I would get, but it looks like I may need half of it to pay for my electric and gas.
Read our autumn budget 2022 page for a breakdown of what it all means for YOU
What is the UK's current inflation rate?
The CPI measure of inflation jumped to 11.1% in October 2022, the latest figures available show.
It's not clear yet whether inflation will climb higher.
Following today's inflation figures announcement, Jeremy Hunt, Chancellor of the Exchequer, said: "We cannot have long-term, sustainable growth with high inflation.
"Tomorrow I will set out a plan to get debt falling, deliver stability, and drive down inflation while protecting the most vulnerable."
Pension triple lock
The issue of keeping or ditching the pension triple lock has been a massive subject of debate in Westminster.
With its safety previously called into question, MPs from all political parties have pleaded with Mr Hunt to keep the policy in place.
The popular triple lock sees pension payments increase in line with whichever of the following is highest:
- Earnings – the average percentage growth in wages in Great Britain
- Prices – the rising cost of living in the UK, as measured by the Consumer Prices Index (CPI)
- 2.5%
Hunt considering extending freeze on income tax
Mr Hunt is considering extending a freeze on income tax thresholds until 2028 – dragging millions more into a higher rate of tax.
The freeze was originally supposed to end in 2026.
By extending it, Brits who earn over £50,000 a year could end up paying £3,659 more in tax overall.
A stealth tax is form a tax collected in a way that isn’t obvious - and you might not even notice it.
What can we expect?
The Chancellor is set to reveal around £25bn of brutal tax hikes, alongside spending cuts reaching £35bn.
The “eye-wateringly difficult” measures are being introduced to fill an estimated £60bn black hole in the public purse.
The gaping hole was caused by a combination of the pandemic, Mad Vlad Putin's war in Ukraine, soaring energy costs and Liz Truss' disastrous mini budget.
Rishi Sunak believes the gap must be filled in order to tackle soaring inflation and the crippling cost of living crisis.
Jeremy Hunt will deliver Government’s Autumn Statement tomorrow
The Chancellor of the Exchequer, Jeremy Hunt, will finally announce the Government’s Autumn Statement tomorrow.
He will provide a financial plan that will have huge implications for your pocket.