What to expect in this week’s Spring Budget
- last year
This week sees Chancellor Jeremy Hunt announce his spring budget - he is expected to announce measures to increase workforce participation among the over-50s, the long-term sick, disabled and benefits claimants. Hunt's plan tackles economic inactivity, which has hurt the UK's struggling economy. As part of the "back-to-work Budget," Hunt will announce the abolition of the current sickness benefits eligibility assessment system. This will allow claimants to receive payments even after returning to work, without the fear of losing their benefits.
The government is under pressure to extend help for cash-strapped families and businesses facing rising costs and energy bills. The Autumn Statement announced policies, including a £900 cost of living payment for hard-up households and benefits being uprated to match inflation in April.
Expected announcements include the extension of the current Energy Price Guarantee until July, capping gas and electricity costs at £2,500 instead of £3,000.
Booze duty will be frozen until August, and smokers will face a record cigarette price hike, with a pack of 20 going up by £1.15. The Treasury is undecided on the fuel duty freeze and the 5p cut.
Around eight million households are expected to receive a £900 cost of living payment in April, paid in three instalments, and the Department for Work and Pensions will contact eligible households. The Chancellor will also announce a plan to drive millions of economically inactive Brits back to work, focusing on the long-term sick, those with short-term illnesses, early retirees, and those on welfare.
Corporation tax will likely rise to 25%, with 70% of businesses not seeing any increase. Income tax and national insurance will remain at current levels, with a vow to cut personal taxes as the economy improves. Benefits and Universal Credit payments will rise in line with September 2022's inflation rate of 10.1% in April, and pensions will increase by 10.1%, with state pensioners receiving £203.85 per week and the Pension Credit standard minimum guarantee increasing to £201.05 per week for single claimants and £306.85 per week for couples.
The government is under pressure to extend help for cash-strapped families and businesses facing rising costs and energy bills. The Autumn Statement announced policies, including a £900 cost of living payment for hard-up households and benefits being uprated to match inflation in April.
Expected announcements include the extension of the current Energy Price Guarantee until July, capping gas and electricity costs at £2,500 instead of £3,000.
Booze duty will be frozen until August, and smokers will face a record cigarette price hike, with a pack of 20 going up by £1.15. The Treasury is undecided on the fuel duty freeze and the 5p cut.
Around eight million households are expected to receive a £900 cost of living payment in April, paid in three instalments, and the Department for Work and Pensions will contact eligible households. The Chancellor will also announce a plan to drive millions of economically inactive Brits back to work, focusing on the long-term sick, those with short-term illnesses, early retirees, and those on welfare.
Corporation tax will likely rise to 25%, with 70% of businesses not seeing any increase. Income tax and national insurance will remain at current levels, with a vow to cut personal taxes as the economy improves. Benefits and Universal Credit payments will rise in line with September 2022's inflation rate of 10.1% in April, and pensions will increase by 10.1%, with state pensioners receiving £203.85 per week and the Pension Credit standard minimum guarantee increasing to £201.05 per week for single claimants and £306.85 per week for couples.