Kwasi Kwarteng has delivered his Mini-Budget, with a string of tax cuts to benefit high earners and changes to stamp duty all confirmed.
The new Chancellor has announced he will bring forward a 1p cut to Income Tax to 2023, as well as reverse a 1.25 percentage point hike to National Insurance.
Mr Kwarteng will also abolish the higher 45% rate of Income Tax, replacing it with a single higher rate of 40%.
Other measures including a huge shake-up to the benefits system and a boost for businesses with the scrapping of a hike in corporation tax.
But what exactly does the Mini-Budget mean for you? We round up all the changes to your income, savings, pensions and more…
What it means for your income
Changes to both National Insurance and Income Tax will affect how much money you take home each month. Both changes will be positive news for your pay packet.
Firstly, the Chancellor has confirmed he will reverse a 1.25 percentage point hike to National Insurance contributions - meaning you'll pay 12% instead of 13.25% on earnings between £12,570 and £50,270.
Workers with an annual salary of £20,000 would save £93 under the policy, while someone earning £80,000 would be £843 better off.
The change to National Insurance contributions will come into force from November 6.
The second direct change to your pay packet will come in April 2023, when a 1p cut to Income Tax will be brought forward.
The basic rate of Income Tax will be cut from 20p to 19p in the pound. You currently pay Income Tax when you earn above £12,570.
It is estimated that 31 million people will be better off by an average of £170 per year through this policy.
In a boost for the rich, the Chancellor will also abolish the higher 45% rate of Income Tax and will replace it with a single higher rate of 40%.
At the moment, you only pay the higher 45% rate of income tax when you’re earning over £150,000 - so this move benefits only 1% of workers, who will save £10,000 on average each.
What it means for your savings
Top-rate tax payers don't currently have any personal savings allowance - this is a threshold that lets you earn interest on your savings without paying tax on that interest.
The removal of the 45% higher rate of Income Tax means these earners will now have a personal savings allowance of £500.
This is the amount they'll be able to earn up to that amount in savings interest without it being taxed.
The cost of living crisis is making it harder than ever for people to save, which means households might still struggle to put money aside even with the tax benefits announced today.
What it means for your pensions
The 1p cut to income tax will spell bad news for pension contributions - meaning you could end up with less cash in your retirement.
At the moment, you get a "tax relief" top-up based on your "highest marginal" rate of income tax.
The "net" cost to an individual investing £100 in their pension is £80 - as their pension receives a £20 top-up from the tax man.
In future, a 19% income tax rate means you’d need to pay in £81 from your take-home pay to have £100 invested in your pension.
So if you were to continue to pay in £80, your pension will benefit from a slightly lower £98.75.
What it means for your benefits
Those who are claiming Universal Credit could be forced into taking on more hours in their existing job, or search for more work, under huge changes to the benefits system.
Those on Universal Credit right now are placed in a "Light Touch" job search group once they work more than nine hours a week at the National Living Wage.
This is rising to 12 hours from Monday, with the Chancellor today confirming it will go up again to 15 hours in January.
Those working less than these hours risk having their benefits reduced if they do not take steps to increase their earnings and meet regularly with a work coach.
Certain groups will remain exempt from sanctions, including people who are unable to work because of long-term sickness or a disability.
