On the Thursday, the Chancellor, Jeremy Hunt, delivered the Autumn Statement to the House of Commons.
The Chancellor announced that he will be increasing benefits in line with inflation and keeping the Triple Lock so that in April, the State Pension and Pension Credit will increase in line with inflation making it the biggest cash increase in the State Pension ever. More than eight million households on means-tested benefits will also receive a cost-of-living payment of £900 in instalments, with £300 going to pensioners and £150 for people on disability benefits.
The National Living Wage will be increased by 9.7% to £10.42 an hour, giving a full-time worker a pay rise of over £1,600 a year and benefitting 2 million of the lowest paid workers.
For all households, the Energy Price Guarantee, which is capping typical energy bills at £2,500, will continue to provide support for 12 months from April 2023 with the cap rising to £3,000.
The Chancellor said there would be an extra £11 billion in funding over the next two years for the NHS and schools. Public spending for the next two years will be protected at the levels set out in 2021 and then increase by one per cent in real terms a year until 2027–28.
Income Tax, Inheritance Tax and National Insurance thresholds will be frozen for a further two years until April 2028.
Speaking after the statement, Richard Fuller MP said:
This Statement was a strong fiscal consolidation of tax rises and spending cuts.
I welcome that the government is protecting the most vulnerable by keeping the pensions Triple Lock and by uprating benefits in line with inflation and through additional cost-of-living payments next year. We need to do more to get people back into work but for those truly in need, it is important to protect them.
The additional funding for the NHS is needed but there was not enough requirement in the Chancellor’s Statement for the NHS to be more productive, as the National Audit Office has called for.
I am also concerned that the freezing of personal tax thresholds will drag a number of people in my constituency into paying the higher rate of tax.”
