What does the Spring Statement mean for your household finances?

The Chancellor announced his Spring Statement yesterday and the measures put in place to support people through the cost-of-living crisis. Below is a run-down of what was announced and what it might mean for your household finances.

National Insurance- the planned rise of 1.25% is still going ahead, but to mitigate the impact this will have the threshold for paying NI has been raised from from £9500 to £12,570 which equates to a saving of around £330. This means if you earn between £9,600 and £35,000 you will either pay less NI or not see a rise in the amount you have to pay.

Petrol/ Diesel fuel duty cut by 5p/ litre- this will mean it will cost an average of £1 less to fill up a typical tank.

£500 million extra for the Household Support Fund- in Shropshire this is managed by Shropshire Council’s Welfare Support team- if you are struggling to afford essential costs they may be able to help. Call 0345 678 9078.

Along with these more immediate measures, the Chancellor also announced support which will not help to ease the burden of the cost-of-living crisis now, but are worth bearing in mind.

0% VAT home energy efficiency- this will apply to things such as heat pumps, solar panels and insulation.

Planned cut to income tax in 2024- the basic rate will be cut from 20% to 19% .

Make sure you are receiving all the support you are entitled to

In this challenging economic period, we would encourage all households with an income of under £30,000 to use Money Saving Expert’s Free 10-minute benefits check. There could be support you are entitled to that you are currently not receiving.

Other support available

Help with school costs- If you're on a low income, you might be able to get help with some of the costs of sending your child to school, including school meals, transport and uniform.

Healthy Start Scheme- If you’re more than 10 weeks pregnant or have a child under 4, you may be entitled to get help to buy healthy food and milk.

Support with energy costs- Read our blog post on the support available with rising energy costs.