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By Wesleyan

Autumn statement and the cost-of-living crisis

financial planning
financial wellbeing
2 min
Female professional holding tablet smiling

The pressure was on the Chancellor today to deliver measures that would reduce financial pressures on households in the midst of a cost-of-living crisis.

Here we look at some of the most significant announcements for bill payers.


In September, the government announced a six-month Energy Price Guarantee for homes, which meant prices would be capped at around £2,500 until April.

And today the Chancellor announced that support would continue for a year after that date, albeit at a reduced level, which will see the average household bill go up to around £3,000.


There was no specific announcement on public sector pay. Workers are reportedly due to receive a pay rise capped at 2% for 2023/4, at a time when inflation is running at 11.1% - a 40 year high.

This represents a real-term pay cut, though the Bank of England expects inflation to begin falling sharply from the middle of next year.

And the Chancellor did announce extra money for the NHS and education to help combat the effects of rising prices.

But millions will be affected by the freeze on Income Tax until 2028, which will see them paying more tax as their earnings increase.

There was good news for those on the National Living Wage, however, which will rise by 9.7% next year to £10.42 an hour.


There was relief for pensioners and those who claim benefits after Jeremy Hunt announced their payments would increase by September’s 10.1% rate of inflation.

And the Chancellor committed to maintaining the pensions triple lock, which means that every year the state pension must rise in line with average earnings, the previous September’s inflation rate or 2.5%, whichever is higher.

Pensioners will also be eligible for a one off £300 cost-of-living payment this winter.


The Chancellor opted to keep the two year Stamp Duty cuts announced in the September mini-budget.

That means the threshold for paying stamp duty stays at £250,000, up from £125,000, while first-time buyers won't pay stamp duty on any property up to £425,000, up from £300,000.

And those in Social Housing will see any rent rises limited to 7%.

Council Tax

Before today’s statement, local councils were only able to increase Council Tax by up to 2.99% a year.

But today the Chancellor increased that limit to 3%, partly to help fund social care.

It’s likely that the majority of authorities will take the opportunity to increase their income.


There were no changes to Fuel Duty in today’s budget, though the Chancellor did announce electric vehicles will no longer be exempt from Vehicle Excise Duty from April.