Autumn statement summary: How the money in your pocket will be affected by Jeremy Hunt's budget

Britain's Chancellor of the Exchequer Jeremy Hunt leaves Downing Street in central London on his way to make a full budget statement in the House of Commons on November 17, 2022. - Britain is set to unveil hefty tax rises and spending cuts at the risk of worsening a cost-of-living crisis for millions in the recession-bound economy. (Photo by JUSTIN TALLIS / AFP) (Photo by JUSTIN TALLIS/AFP via Getty Images)
Jeremy Hunt warned the UK was now in recession in his autumn statement. (Getty Images)

The key points and highlights of Jeremy Hunt's autumn statement will be pored over by millions of Britons desperate to know how they will be affected.

Warning that the country is now in recession, the chancellor unveiled a serious of measures that means many will pay more tax while facing double-digit inflation.

Yahoo News UK summarises the key changes that will hit your pocket - and when those changes will happen.

Energy price guarantee changes

When: from April 2023

What it means: The government's energy price guarantee (EPG) will end in its current form - which caps the average yearly energy bill at £2,500 – in April. Instead, the cap will be increased to £3,000 and last a further 12 months. Hunt said on average this will help a household by around £500.


When: From April 2023

What it means: Hunt has announced the government will protect the triple lock, which ensures the state pension will increase by whichever is highest out of consumer price index (CPI) inflation, increases in wage earnings, or 2.5%. It comes despite speculation the lock could be reviewed with inflation at its highest for 40 years and means pensions will increase by 10.1% in April 2023 – a £870 increase.

Benefits increasing with inflation

When: From April 2023

What it means: The government will also honour Sunak's pledge in May to increase benefits by 10.1% – also in line with September's inflation. It comes after much speculation they would only rise by earnings, which is 5.5% – which had triggered a backlash from from campaigners. Hunt said it will cost £11bn in total.

It means 10 million working-age families will see an increase in their income next year, with the average family on universal credit seeing an extra £600. He also said he will increase the number of households that can benefit by raising the benefit cap with inflation.

Cost of living payments

When: Next year

What it means: Means-tested benefit claimants will be provided with similar support as they were in May, receiving a £900 one-off payment towards the cost of living.

Pensioners will also receive £300, with those on non-means tested disability benefits like personal independence payments (PIP) will also receive £150.

There will also be an extension of the household support fund by £1bn, which allows local authorities to support

Those on alternative fuels – such as LPG and heating oil – will have their payments doubled from £100 to £200 as soon as possible this winter.

Top rate of income tax rise

When: until April 2028

What it means: Hunt said he is reducing the threshold at which 45p rate of income tax is paid from £150,000 to £125,140, but said he was not raising headline rates of taxation. He said those earning £150,000 or more will pay just over £1,200 more a year.

Income tax and National Insurance contribution (NICs) threshold freeze

When: until April 2028

What it means: Income tax and NICs thresholds were already frozen until 2026, but the freeze will now last until 2028. This will bring more people into higher tax bands as wages increase amid high inflation.

Increase in the national living wage

When: April 2023

What it means: The national living wage is the minimum pay per hour most people in work are entitled to. Hunt has announced that it will increase from £9.50 to £10.42 per worker next year.

Electric vehicles

When: From April 2025

What it means: Electric vehicles will no longer be exempt from vehicle excise duty from April 2025 to make the motoring tax system “fairer”.

Council tax increases

When: From April 2023

What it means: Councils will be allowed to hike council tax by 5% without a referendum in order to help raise money for social care.

The stamp duty reductions scrapped

When: from March 2025

What it means: In September, Liz Truss increased the stamp duty exemption for buying properties from £125,000 to £250,000, and for first-time buyers from £300,000 to £425,000. Hunt announced that this measure will now be temporary and will only remain in place until 31 March 2025.

Social housing rent increase

When: April 2023

What it means: One of the government's most controversial decisions will be to increase rents for social housing tenants, many of which are on low incomes or disabled, by 7%. While below what the usual formula would have produced, which is usually CPI inflation + 1%, it will still represent a huge increase on this April - which was 4.1%.

Inheritance Tax

When: Until 2028

What it means: Like income tax thresholds, the inheritance tax threshold will remain frozen at £325,000 beyond 2026 for another two years.

Watch: Autumn statement: Millions to pay more in tax as chancellor cuts top-rate threshold and lays out plan to plug 'black hole'