Chancellor Rishi Sunak has just announced his Spring Statement as we learn inflation has reached a 30-year high at 6.2%.
The UK is experiencing unacceptable high rises to their energy, food and fuel bills. It means the next few months will be tough for lots of families.
But has the government offered any further help to mums?
Here are my thoughts on the Spring Statement and how it might affect you.
National Insurance changes
The Chancellor has chosen to leave the 1.25 percentage point increase in national insurance in place, the social care levy, an average impact of £250 in extra tax.
But has chosen to soften this blow by increasing the National Insurance threshold by £3,000 in July, giving an average of £330 back to around 30million people.
This will help mums on lower and average incomes. If you earn below £12,570 you will not pay any income tax and now will not pay national insurance either.
This tax change only impacts those favourably on lower and average incomes, mums on around £35,000 or more will be paying more tax with 1.25 percentage increase.
Fuel costs
As widely anticipated, fuel duty has been cut by 5p per litre, meaning that the tax is still 52.95p per litre.
If you are using 40 litres of fuel per week you will be saving just £2. Really not much of a saving to make a difference to our pockets.
And this cut is only in place for one year, we may get a 5p increase in April of 2023.
Inflation predictions
The Chancellor warned of huge inflation predictions for this year, an important measure of the cost of living and what we buy.
Inflation is expected to average at 7.4% but ending the year at around 9%.
What we buy week in week out will continue to go up in price. Tougher times ahead for the weekly shop and monthly bills.
Energy bills
The only nod to energy bill support was an increase to the Household Support Fund, a fund that your local council holds where you can apply to for help with your energy bills.
This is available to the most vulnerable households.
This is hugely disappointing with the immediate impact of bills rising hugely from April 2022.
If feels like we are simply expected to accept the bill increases with no help.
Hardly worth mentioning but there was a VAT cut to energy saving devices such as solar panels, heating pumps etc.
These devices have a significant upfront cost to install, now made slightly cheaper.
Income tax
There was a dramatic end of statement announcement in that Income Tax is to drop from 20p to 19p.
But not until 2024 and only if certain targets are hit.
If feels like we are to go through two years of pain to then be given some respite two years in the future.
Overall, my view is that the changes are not enough, particularly for mums.
Our food, energy and fuel bills will continue to rise, albeit with some respite for lower earners in July.
Certainly, for the short term the cost of living will continue to rise, and mums will have bigger bills and higher debt levels to contend with.
