What do the Chancellor’s announcements mean for my household?
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Rishi Sunak has delivered his Budget, including several policies that will give households both more and less money in their pockets.
Below are four topics that came out of the Chancellor’s announcements and how they might impact your wallet.
– If you’re on Universal Credit
If you are getting back into work but are still on Universal Credit, you could be left with a pretty big windfall.
Universal Credit starts to be phased out when you start earning again. For every £1 you earn, your Universal Credit was in the past cut by 63p.
This figure, known as the Universal Credit earnings taper rate, will be reduced to 55p, leaving you with an extra 8p per pound to spend.
– If your energy bills are going up
As shadow chancellor Rachel Reeves pointed out after his speech, Mr Sunak did not make any promises to help households with the runaway bills sparked by a spike in gas prices.
From April the price cap on energy bills is expected to rise to around £1,660 for an average household, from £1,277 today.
A Treasury paper acknowledged that European gas prices had risen by 471% in the year to September, but it did not announce any steps to reduce soaring gas bills.
– If you drive – or fly – within the UK
The price of petrol is likely to be lower after the Chancellor announced he was scrapping a planned hike in fuel duty.
Mr Sunak said he would freeze fuel duty at 57.95p per litre for the year ending March 2023. The decision comes after petrol prices pushed to their highest point in eight years late last week.
Controversially, days before the UN climate change summit in Glasgow, the Chancellor also said he would cut air passenger duty for domestic flights by 50% to £6.50.
– If you like a tipple
If fortified wine or high strength white cider are your thing, your drinks tab is about to go up. The Government will increase tax on these because of their high alcohol content.
But lower-alcohol drinks such as fruit cider, liqueur and rose wine will have lower taxes.
If you like craft cider you might also see your bills go down as small producers will for the first time be eligible for tax relief.
Draught beer served in pubs will also see a duty cut, the Chancellor said. The reforms will come into effect in February 2023.