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Jeremy Hunt will prolong energy assistance in his autumn statement, but costs will rise.

Updated: May 2, 2023


Although at a less generous level, assistance with energy bills is likely to be continued after April in Chancellor Jeremy Hunt's Autumn Statement.


Here are all the main announcements from Chancellor Jeremy Hunt's autumn statement to MPs:


ENERGY BILLS


• Through the energy price guarantee, energy bill assistance for homes was extended past April for an additional year, however the average yearly payment will increase to £3,000 from the current £2,500. supports households with an amount of about £500.


• Additional cost of living payments of £900 will be made to households receiving means-tested benefits, £300 to homes with pensioners, and £150 to those receiving disability benefits the following year.


A further £1 billion in funds is required to extend the household support fund for another 12 months.


• To improve energy security and further diversify away from harmful carbon, the government will move forward with construction of the new Sizewell C nuclear facility with a £700 million taxpayer investment.


• Additional £6 billion in investment for energy efficiency starting in 2025.


 

BENEFITS


• Inflation-adjusted working-age and disability payments increased by 10.1% at a cost of £11 billion.


• In an effort to bring more people on Universal Credit into the workforce and better-paying jobs, over 600,000 more recipients will be required to meet with a work coach.


• A maximum 7% increase in social rentals is permitted in 2023–2024.


• The National Living Wage will increase from April on by 9.7% to an hourly rate of £10.42, representing a wage increase of more than £1600 for a full-time employee.


 

PENSION


• Pension credit to rise by 10.1%, worth up to £1470 for a couple and £960 for a single pensioner. This delivers on promise under the so-called triple-lock.


 

TAXES


• Reduces the threshold at which the 45p rate becomes payable from £150,000 to £125,140.


• Maintains freeze on the income tax personal allowance, higher rate threshold, main national insurance thresholds and the inheritance tax thresholds for a further two years - to April 2028.


• Dividend allowance will be cut from £2,000 to £1,000 next year and then to £500 from April 2024.


• The annual exempt amount for capital gains tax will be cut from £12,300 to £6,000 next year and then to £3,000 from April 2024.


• From April 2025, electric vehicles will no longer be exempt from vehicle excise duty.


• Stamp duty cuts announced in the mini-budget will remain in place, but only until 31 March 2025.


 

BUSINESS TAXES


• While the employer's National Insurance contributions threshold is frozen until April 2028, the employment allowance will be retained at its new, higher level of £5,000 until March 2026.


• R&D tax relief for SMEs deduction rate cut to 86% and the credit rate to 10% but increase the rate of the separate R&D expenditure credit from 13% to 20%.


• Windfall tax on major oil and gas producers raised to 35% from 25%. A 45% energy profits levy rate to be imposed on electricity generators to raise a combined £14bn next year.


• Nearly two thirds of properties will not pay a penny more in business rates next year. Says thousands of pubs, restaurants, and small high street shops will benefit to the tune of £14bn over five years.


 

BUSINESS SUPPORT


• By the end of next year, changes to EU regulations in five growth industries: digital technology, life sciences, green industries, financial services and advanced manufacturing will have been decided.


• Plan to help make Britain the "new Silicon Valley" will also see public funding for R&D (research and development) increased to £20bn by 2024/5.


• "We will deliver the core Northern Powerhouse Rail". Promises existing funding for HS2 to Manchester, East West Rail., new hospitals programme and gigabit broadband rollout.


 

NHS


• Adult social care secures additional grant funding of £1bn next year and £1.7bn the year after. Says this means an increase in funding available for the social care sector of up to £2.8bn and £4.7bn respectively.


• Increases the NHS budget, in each of the next two years, by an extra £3.3bn.


• To invest an extra £2.3bn per year in our schools.


• An extra £1.5bn for the Scottish government, £1.2bn for the Welsh government and £650m for the Northern Ireland Executive.



 

ECONOMY


• Office for Budget Responsibility (OBR) forecasts borrowing in this financial year of £177bn, £140bn in 2023/4.


• OBR sees "overall" UK growth in 2022 of 4.2% but economy now in recession. Contraction of 1.4% expected in 2023.


• OBR sees a rise in unemployment from 3.6% today to 4.9% in 2024.


• OBR sees an average inflation rate this year of 9.1% and 7.4% next year.


• Two new fiscal rules: Underlying debt must fall as a percentage of gross domestic product by the fifth year of a rolling five-year period, and that public sector borrowing must be below 3% of GDP over the same period.






 


0151 459 3388 | info@smart-energy.uk





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