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Autumn Budget: what it could mean for you

5 key takeaways from the Autumn Budget and Spending Review

As we hear that the economy is expected to return to pre-pandemic levels at the beginning of next year, the chancellor delivers his spending and taxation plans in his Autumn Budget. Let's look at some key takeaways.

  1. 01

    The Office for Budget Responsibility (OBR) predict the economy willl recover quicker than was expected, with a growth forecast of 6.5% for this year and 6% for 2022. The OBR also downgraded the economic impact of COVID from 3% to 2%, and its unemployment forecast from 12% to 5.2%. 

  2. 02

    The OBR have forecast that inflation could hit an average of 4%. This led to the chancellor announcing a a range of measures aimed at managing the cost of living including an increase in the minimum wage, a reduction in the Universal Credit taper, continuation of the fuel duty freeze and an overhaul of alcohol duties.

  3. 03

    The chancellor pledged an increase in the "block grant" for devolved administrations, as well as allocating the first round of bids from the levelling-up fund and billions of pounds of spending on transport infrastructure, bus services and road upgrades, particularly outside of London. 

  4. 04

    In a bid to support sectors hit particularly badly by the pandemic, the chancellor announced a 50% business rates discount for retail, hospitality and leisure sectors, as well as a cut in Air Passenger Duty on domestic flights.

  5. 05

    The spending review was relatively light on climate change. In fact, many campaigners accused the government of being anti-green as a result of announcements made regarding a continued fuel duty freeze and reduction to domestic flight Air Passenger Duty.

Raising a glass, but not duty

Key budget announcements

Pay & benefits

National living wage

From April 2022, the national living wage will rise by 6.6% to £9.50 an hour for those aged 23 and over. The rise means a full-time worker will get £1,074 extra a year before tax. By 2024, the chancellor has committed to raising this again to £10.50 per hour.

Universal Credit taper

The introduction of a lower taper rate for those on Universal Credit was announced by the chancellor. This means the proportion of each pound kept by those in work and in receipt of Universal Credit will increase.

Work allowance

Rishi Sunak announced an increase of £500 to the work allowance. This is the amount you can earn before your Universal Credit payment is affected.

Transport

Education & skills

Business

Housing

National living wage to rise to £9.50 per hour

How will the living wage increase affect me?

Check out the table below to find out how much more you will be paid from April 2022. We've outlined the change per hour and over the course of a year.
Remember, these changes are calculated before tax. It's important to calculate your take home pay after tax and other deductions. Check out our guide to take home pay to find out how this may affect your monthly wage.

AIB Trust blog team

Updated 28th October 2021