What does the Autumn Statement & new minimum wage mean for you?

There can’t be too many people who are not feeling the financial pinch at the moment, with mortgage interest rate increases, high fuel and energy costs, not forgetting an ever increasing shopping bill at your supermarket of choice.

The Autumn Statement has overturned nearly everything in the “Growth Plan” from earlier this year, with the government using the Autumn Statement to raise money in invest in public services. The Personal Allowance (the amount you can earn before paying income tax) will remain unchanged at £12,570 , however the highest rate of tax, the Additional Rate (45%) threshold is dropping from £150,000 to £125,140.

There is some good news (with a twist) for those paid the National Living Wage, in April 2023 it will rise to £10.42 per hour, a 9.7% increase for those 23 years of age and older. As mentioned, the Personal Allowance is not increasing, so this rise in wage will result in employees paying more tax. To illustrate what this might mean to an employee working full time 37.5 hours a week, please see the following comparison.