Key outcomes from the Autumn Budget and Spending Review 2021
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On 27 October, Chancellor Rishi Sunak unveiled the 2021 Autumn Budget and Spending Review. Here at Citizens Advice Wigan Borough, we’re providing you with an overview of the key outcomes from this year’s budget and letting you know how your finances may be affected.
Universal Credit taper reduced
The taper rate in Universal Credit is being reduced from 63% to 55%. This means that if you’re in receipt of Universal Credit and you work, you’ll keep an extra 8p for every pound you earn after tax, NI and pension contributions. You can expect these changes to come in by 1 December 2021.
In addition to this, the Work Allowances in UC are increasing, so if you receive Work Allowance you’ll be able to get an extra £500 a year.
National Living Wage increased
The National Living Wage will be increased by 6.6% to £9.50 an hour for those aged 23 and over from 1st April 2022. If you are under 23, find out here what the National Minimum Wage is increasing to for your age group.
Personal Tax Allowance
In the last budget, the Chancellor announced a freeze on income tax personal allowance, and this was reaffirmed in the Autumn budget. The freeze will occur from 6 April 2022 until 5 April 2026. This means that the personal tax allowance rate will stay at £12,570 until April 2026.
Continued fuel duty freeze
The Chancellor has chosen to continue the decade-long fuel duty freeze for 2022-2023 amid the high prices seen recently on fuel amid the recent petrol crisis.
Alcohol duty changes
The Chancellor seeks to simplify the Alcohol Duty system through taxing drinks in proportion to their alcohol content. This means for a drink with more alcohol, you will be paying more on alcohol duty.
The planned increase in alcohol duty has also been scrapped, with no increases for 2022-2023.
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