DRINKERS, benefits claimants and pensioners are among the winners of today’s Autumn Statement – with smokers and the unemployed hit.
The Chancellor has revealed a whole host of financial changes and updates affecting Brits in his speech in the Commons today.
1
In his second Autumn Statement since becoming Chancellor, Jeremy Hunt has set out the government’s financial plan for the rest of the year.
Mr Hunt vowed to “reduce debt, cut taxes and reward work” as he unveiled a package aimed at saving cash-strapped Brits and turbo-charging the economy.
He detailed tax and spending changes that the party will implement over the coming months.
These included benefits uprating, pension increases and a rise in tobacco duty.
Below we reveal the Autumn Statement’s winners and losers.
In his Autumn Statement, Jeremy Hunt announced:
Losers
Unemployed
Millions of Brits could be stripped of all their benefits if they fail to find a job after a fixed period of time.
Jeremy Hunt announced his “Back to Work plan” in the Autumn Statement.
He warned there will be tougher sanctions for people who don’t look for work.
He said: “If after 18 months of intensive support jobseekers have not found a job, we will roll out a programme requiring them to take part in a mandatory work placement to increase their skills and improve their employability.
“And if they choose not to engage with the work search process for six months, we will close their case and stop their benefits.”
Smokers
Smokers will have to pay more for rolling tobacco as Chancellor Jeremy Hunt announced the biggest ever hike tax to rates.
The government will increase duty on hand-rolling tobacco by 10% over the tobacco duty escalator.
The usual escalator is the RPI rate of inflation plus 2%.
That means the tax will go up by the RPI level of inflation plus 12%.
Mr Hunt said: “I am going to increase duty on hand-rolling tobacco by an additional 10% above the tobacco duty escalator.”
Meanwhile, the price of all tobacco products will increase by RPI plus 2%.
A hike wasn’t expected as it tends to be changed in the Spring Budget.
The previous increase was revealed earlier this year in April, which saw the price of a pack of cigs increase by over 12%.
Campaigners have slammed Mr Hunt’s move, saying the Chancellor has “raised two fingers to working class people across the country”.
Savers
Savers are also among the “losers” due to Lifetime ISA penalties not being scrapped, according to some experts.
Consumer champion Martin Lewis is among those who had been urging Mr Hunt to use his Autumn Statement to overhaul “unfair” aspects of the savings accounts.
These LISAs are often used by first-time buyers to get on the property ladder.
But the home must cost less than £450,000 – a threshold that has remained the same since the saving scheme was first launched in 2017 despite rising house prices.
The MoneySavingExpert.com (MSE) founder branded the accounts a “dead duck” product, as buying a property over this amount leaves savers paying a penalty.
He tweeted today: “Damn. Our Lifetime ISA campaign has failed. NO CHANGE to the fact people using it to buy house over £450,000 due to the house price rise, will still be fined by the government and have less money than they started with.”
Winners
Drinkers
Boozers up and down Britain rejoiced today as Jeremy Hunt confirmed the price of pints and spirits will stay the same.
In a major win for The Sun’s Save Our Sups campaign, the Chancellor confirmed a freeze on alcohol tax – and extended the business rates relief for pubs at the Autumn Statement.
Hunt gave a direct shout out to The Sun’s campaign as he announced the pub-friendly measure, which will save Britain’s boozers £4.3billion.
Beer bosses had warned the average pint in Britain could shoot up by 20p overnight unless Mr Hunt stepped in.
Benefits claimants
Millions of households on benefits, including Universal Credit, will get a payment boost worth up to £470 next year.
Jeremy Hunt has confirmed that benefit payments will increase in line with September’s inflation rate.
The payment boost will come into effect in April 2024 and the average family on Universal Credit will be around £470 a year better off.
There were concerns that the government was planning to use a lower inflationary figure to uprate welfare payments.
The yearly inflation rate for September came in at 6.7%, compared to 4.6% for October.
Pensioners
Pensioners are also set for a bumper rise of up to £901 to their state pension payments.
It comes as it was announced that the pension triple lock will remain intact.
The amount pensioners get from the state rises every year in order to keep up with the cost of things like food and household bills.
Mr Hunt has now confirmed that payments will increase by 8.5% in April 2024.
That’s because the triple lock system sees the state pension rise in line with whatever is highest out of: wages for May to July, 2.5% or September’s inflation figures.
Not only that but Pension Credit standard minimum will also rise in line with July’s wages data at 8.5%.
Plus, Mr Hunt announced he will consult on giving pension savers a “legal right to require a new employer to pay pension contributions into their existing pension”.
This would allow workers to build up a pension “pot for life” under the radical new plans.
Meanwhile, first-time buyers and savers are getting extra support under a few changes hidden in Autumn Statement documents.
And, we reveal all the Universal Credit and benefit changes announced in the Autumn Statement.
You can also join our new Sun Money Facebook group to share stories and tips and engage with the consumer team and other group members.
