Autumn statement key points at a glance - 22nd November 2023

Jeremy Hunt has today delivered his Autumn statement, we summarise the key points that impact personal financial planning:

Personal tax

• National insurance contributions to be cut by two percentage points to 10% for those earning between £12,570 and £50,200 a year. This will take affect from 6th January 2024.

• National insurance reforms for the self-employed. Class 2 national insurance to be abolished. Class 4 national insurance will be cut from 9% to 8% on earnings between £12,570 and £50,270.

Pensions

•  State pension payments are to rise by 8.5% to £221.20 a week, worth almost an extra £900 a year. The triple lock will be "honoured in full".

ISAs

• There has been an overhaul of the ISA rules but the £20,000 allowance remains unchanged. Look out for our ‘ISA update’ about the changes, coming soon.

Wages and benefits

• National living wage will increase by more than a pound an hour from April to £11.44. It will also be extended to 21-year-olds.

• Benefits will be increased by 6.7%, there will be tougher requirements for those who claim them to look for work.

• People claiming benefits will face mandatory work experience if they do not find a job within 18 months.

• Increase in the local housing allowance, which has been frozen since 2020, in a measure worth £800 for some households next year.

Growth

• Forecasts from the Office for Budget Responsibility show the economy will grow by 0.6% this year and 0.7% next.

• Economy now 1.8% larger than it was before the Covid-19 pandemic, according to the official figures, he says.

• Inflation is expected to fall to 2.8% by the end of 2024 according to the spending watchdog, down from 11.1% last year.

• GDP expected to grow 1.4% in 2025, and 1.9% in 2026 and 2% in 2027 and 1.7% in 2028.