What will the Autumn Budget mean for your money?

The UK’s Autumn Budget will be announced by Rishi Sunak on October 27, and although there are no certainties, there is a lot of grounded speculation on what the budget will contain.

Below you can find a roundup of the most likely announcements and what this will mean for your money. Graduates with outstanding Student Finance debts should definitely take note.

But first, what are the biggest changes that have already been released?

What we already know

Significant announcements were already made in September, which could dwarf any changes released in the Autumn Budget. The most talked about change is the planned rise of National Insurance which will begin from April 2022. These increases in National Insurance will help pay for social care and support the NHS after a damning pandemic period.

A number of other notable changes include suspension of the pension ‘triple lock’, a £500m Household Support Fund to help families get through winter – and a new grant scheme to replace gas boilers with carbon-efficient heat pumps.

What we expect from the Autumn Budget

The Autumn Budget will address an extensive list of societal and economic issues. Below is a snapshot of what we expect and how these changes could affect your money:

1. Increases in the minimum wage
   
   The minimum wage for those over 23 is currently set at £8.91 per hour. Some newspapers are reporting that this is going to increase to £9.42. In doing so, someone working 35 hours each week would see their annual income increase by just over £900 before tax. It’s not clear whether a similar increase will be applied for workers under 23.
    
2. Increases in the state pension
   
   As of April 2022, anyone receiving the new state pension can celebrate a rise of 3.1%, equating to around £288 more each year. This has already been confirmed and might not be mentioned by the man with the red briefcase. However, the increase would have been greater if it wasn’t for the aforementioned suspension of the ‘triple lock’.
    
3. Reduced student finance repayment thresholds
   
   There are multiple reports that the government is planning to reduce the repayment threshold for both Plan 1 and Plan 2 Student Finance borrowers. This comes off the back of a report suggesting the government could claw back almost £2bn each year by doing so.
   
   Making young graduates pay back more on top of an increase in National Insurance is likely to receive a backlash – but we will have to wait to see if this materialises.  

What we don’t yet know

One ongoing issue is that the £20 Universal Credit increase ceased on October 6, which was initially brought in to help low-income families during the pandemic. Many groups have stressed the need to put it back in place or come up with a new solution.

It may be that the Household Support Fund is intended to be that solution over winter, but it is not yet clear. We may still hear about a new scheme or a reintroduction of the £20 increase.

October 2021