What you need to know about the Autumn Budget 2023
On 22nd November, the Chancellor unveiled the 2023 Autumn Budget. We’re providing you with an overview of the key outcomes and how your finances will be affected.
Benefits Uprated
Over the last several months, Citizens Advice has been calling on the government to ensure benefits are uprated. The Chancellor has announced that benefits will increase by 6.7% from April 2024, giving an average increase of £470 for 5.5 million households next year.
Despite this welcome increase, the Chancellor also announced tougher new measures for job seekers. Those who are expected to find work must do so within 18 months or they will have to undertake work experience placements. Those who refuse to comply with these new rules will face having their benefits stopped. This is a plan that is still subject to parliamentary approval, and ministers say that these new rules would not apply to additional payments for child, housing, and disability support.
Local Housing Allowance Rates Unfrozen
The Chancellor announced that Local Housing Allowance rates will be unfrozen from April 2024, being increased to the 30th percentile. This means that rates will now be worth 30% of local market rents. However, this increase is set to only last for a year, and rates will be frozen again from 2025-26 onwards, meaning the help this benefit provides will decrease over time as private rental prices continue to rise.
Minimum wage increases
Minimum wages are set to increase from April 2024. The National Living Wage will rise to £11.44, and 21 and 22 year olds will now be eligible. An overview of the changes to minimum wage rates can be found on the GOV.UK website.
National Insurance Cuts
The main rate of National Insurance contributions (Class 1) will be cut by 2% from 6th January 2024. Those self-employed will also see cuts to their National Insurance contributions from April 2024. The main rate of Class 4 self-employed National Insurance contributions will be cut from 9% to 8%, and Class 2 contributions, the flat rate weekly contribution of £3.45 for those earning more than £12,570 a year, will be abolished altogether.
Pensions
The Triple Lock on State Pensions will be maintained and State Pensions will rise by 8.5% from April 2024. It will be worth:
£221.20 a week for the full, new flat-rate state pension (if reached state pension age after April 2016)
£169.50 a week for the full, old basic state pension (if reached state pension age before April 2016)
If you need help or advice, get in touch with our team today - call us free on 0808 2787 801, or email us at advice@cawb.org.uk.
