Jeremy Hunt has outlined a package containing “difficult decisions” that amounts to a “substantial tax increase” in an Autumn Statement he said would put the UK on a “path to stability”.
The package represents a significant change from his predecessor Kwasi Kwarteng’s unfunded tax cuts in the disastrous mini-budget less than two months, ago which was widely blamed for having spooked the markets.
Here are all the main points that will affect those living in Scotland:
READ MORE - Universal Credit update announced in Autumn Budget that will impact 600K people
Benefits to rise in line with inflation rates
Chancellor Jeremy Hunt has confirmed that certain means-tested benefits and pensions will rise in line with inflation rates next year.
Mr Hunt said he will increase working age and disability benefits in line with inflation, with a rise of 10.1 per cent, costing £11 billion. By law, some disability benefits must rise in line with inflation each year anyway.
Pensions will rise in line with inflation rates, as well as benefits like Universal Credit. Means-tested benefits include:
- Income-based Jobseeker’s Allowance
- Income-related Employment and Support Allowance
- Income Support
- Pension Credit
- Tax Credits (Child Tax Credit and Working Tax Credit)
Follow along on our LIVE blog for more updates on the Autumn Budget and how it will affect the people of Edinburgh
- Housing Benefit
- Council Tax Support
- Social Fund (Sure Start Maternity Grant, Funeral Payment, Cold Weather Payment)
- Universal Credit
Means-tested benefits are available to people who can demonstrate that their income and capital are below a certain level. Pensions will also rise in line with the inflation rate, as confirmed by the Chancellor today.
Jeremy also noted that this promise means the UK Government is sticking to its “triple lock” on the state pension.
That refers to a manifesto pledge that the state pension would rise in line with the highest of: the previous September's inflation figure, the average wage increase, or 2.5 per cent.
National Living Wage increase
The National Living Wage will increase by 9.7 per cent from £9.50 per hour. The increase means that a person working full time on a wage matching the National Living Wage will be £1,600 per year better off on average.
The raise was expected, with experts believing that the change will benefit around two million workers. This represents a pay rise for 9.4 per cent of the UK's working population.
Edinburgh schools to benefit from budget boost
The Chancellor said he will invest an extra £2.3 billion per year in schools over the next two years.
The Tory MP explained that difficult decisions would need to be made as the UK faces challenging financial times. However, cuts were not made when it comes to the education system across the UK.
During the statement, Mr Hunt said public spending would grow “slower than the economy” but he stated that the Government would protect the increases in departmental budgets already set out in cash terms, before growing resource spending at 1 per cent a year in real terms over the next three years.
The cash increase will apply for both 2023-24 and 2024-25 – meaning funding will rise by £4.6 billion over the two years.
Hunt said his message to school staff was “thank you for your brilliant work – we need it to continue”.
Cost of living support to be boosted
The energy price guarantee scheme will increase from £2,500 for the average household to £3,000 for 12 months from April 2023, the Chancellor confirmed.
The Government will introduce additional cost-of-living payments for the “most vulnerable”, with £900 for those on benefits, £300 for pensioners and £150 for those on a disability benefit.
The Chancellor said he will cap the increase in social rents at a maximum of 7 per cent in 2023/24, saving the average tenant £200 next year.
Universal Credit claimants urged to meet with work coaches
Chancellor Jeremy Hunt has confirmed a Universal Credit update that will impact 600,000 across the UK.
The Chancellor has said that he is fully committed to helping people find work, raise their incomes and become financially independent.
As well as this, Jeremy said that he will ask over 600,000 more people on Universal Credit people to meet with their work coach, "so they can get the support they need to increase their work hours or earnings."
Jeremy Hunt said that Work and Pensions Secretary Mel Stride will review “issues holding back workforce participation”, which will conclude early in the new year.
DWP to get £280 million boost to crack down on fraud and error
The Chancellor noted that he will also invest an extra £280 million to the Department for Work and Pensions (DWP) to “crackdown” on benefit fraud and error over the next two years.
He added that the Government will postpone the managed transition of people from employment and support allowance on to Universal Credit to 2028.
Energy price cap increase as Edinburgh households hit with higher bills
Households across Edinburgh will be forced to face increased energy bills when the cap is changed. Chancellor Jeremy Hunt told MPs that difficult decisions were required to ensure a "shallower downturn".
However, he explained that the economy was still expected to shrink by 1.4 per cent in 2023. The energy cap was a key concern ahead of the statement, with Hunt confirming the average household energy bill will increase from £2,500 to £3,000 from April 2023.
Jeremy Hunt said “this still means an average of £500 support for every household”. Additionally, there will be no universal payment of £400 to every household.
Instead there will be additional cost-of-living payments for people on means-tested benefits, pensioner households and those on disability benefit.
NHS budget to increase by extra £3.3 billion in 2023
The Chancellor said he will increase the NHS budget by an extra £3.3 billion in each of the next two years. The NHS will be asked to “join all public services in tackling waste and inefficiency”.
Jeremy Hunt also added that the NHS would publish an independently-verified plan for the number of doctors, nurses and other professionals needed in five, 10 and 15 years’ time.
He allocated for adult social care additional grant funding of £1 billion next year and £1.7 billion the year after.
Check out the recap of Edinburgh Live's live blog on the Autumn Statement here for further details on what money changes could affect you.
READ NEXT
I'm A Celebrity's Chris Moyles weight loss as star opens up on six stone shedding
Certain DWP benefits set to rise in line with inflation from April 2023
Lorraine Kelly shares stunning transformation pictures after dramatic weight loss
The Crown: 7 things from season 5 that never actually took place
Tesco removes 'essential item' from shelves as supermarket issues important update
