DRINKERS, benefits claimants and pensioners are among the winners of today's Autumn Statement – with smokers and the unemployed hit.
The Chancellor has revealed a whole host of financial changes and updates affecting Brits in his speech in the Commons today.
In his second Autumn Statement since becoming Chancellor, Jeremy Hunt has set out the government's financial plan for the rest of the year.
Mr Hunt vowed to "reduce debt, cut taxes and reward work" as he unveiled a package aimed at saving cash-strapped Brits and turbo-charging the economy.
He detailed tax and spending changes that the party will implement over the coming months.
These included benefits uprating, pension increases and a rise in tobacco duty.
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In his Autumn Statement, Jeremy Hunt announced:
- The biggest ever price hike for tobacco products
- A major win for The Sun's Save Our Sups campaign with alcohol duty frozen
- A major benefit change for renters on Universal Credit
- A £10,000 energy bill discount for Brits living near pylons
- A £350 income boost for self-employed workers
- A £470 payment boost for millions on Universal Credit
- Millions will be stripped of benefits under harsh new rules
- Nurses will save £500 in a personal income tax cut
- No fuel duty hike in huge relief for drivers
Below we reveal the Autumn Statement's winners and losers.
Losers
Workshy benefits claimants
Millions of Brits could be stripped of all their benefits if they fail to find a job after a fixed period of time.
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Jeremy Hunt announced his "Back to Work plan" in the Autumn Statement.
He warned there will be tougher sanctions for people who don't look for work.
He said: "If after 18 months of intensive support jobseekers have not found a job, we will roll out a programme requiring them to take part in a mandatory work placement to increase their skills and improve their employability.
"And if they choose not to engage with the work search process for six months, we will close their case and stop their benefits."
Smokers
Smokers will have to pay significantly more for rolling tobacco AND cigarettes.
Chancellor Jeremy Hunt announced the biggest-ever hike in tax rates for loose tobacco used in rolled-up cigarettes.
The government will increase duty on hand-rolling tobacco by 10% over the tobacco duty escalator.
The usual escalator is the RPI rate of inflation plus 2%.
That means the tax on rolling tobacco will go up by the RPI level of inflation plus 12%.
Mr Hunt said: "I am going to increase duty on hand-rolling tobacco by an additional 10% above the tobacco duty escalator."
Meanwhile, the price of all tobacco products will increase by RPI plus 2% at 6pm on Wednesday, it was confirmed.
That means an average increase of 29p on a pack of 20 cigarettes.
A hike wasn't expected as it tends to be changed in the Spring Budget.
The previous increase was revealed earlier this year in April, which saw the price of a pack of cigs increase by over 12%.
Campaigners have slammed Mr Hunt's move, saying the Chancellor has "raised two fingers to working class people across the country".
Savers
Savers are also among the "losers" due to Lifetime ISA penalties not being scrapped, according to some experts.
Consumer champion Martin Lewis is among those who had been urging Mr Hunt to use his Autumn Statement to overhaul "unfair" aspects of the savings accounts.
These LISAs are often used by first-time buyers to get on the property ladder.
But the home must cost less than £450,000 – a threshold that has remained the same since the saving scheme was first launched in 2017 despite rising house prices.
The MoneySavingExpert.com (MSE) founder branded the accounts a "dead duck" product, as buying a property over this amount leaves savers paying a penalty.
He tweeted today: "Damn. Our Lifetime ISA campaign has failed.
"NO CHANGE to the fact people using it to buy a house over £450,000 due to the house price rise, will still be fined by the government and have less money than they started with."
Higher-income earners
Those on high incomes who have been sucked into higher tax bands will continue to suffer after today's announcement.
The freeze on income tax and National Insurance thresholds until 2028 will leave millions of households worse off.
This freeze, which was announced at this time last year, combined with wage rises will keep dragging many more workers into these higher tax bands.
This means someone on an average UK salary of £33,000 will pay almost £2,557 more income tax between last November and 2028.
Inheriting households
The rate at which families start paying inheritance tax (IHT) has been frozen since 2009, and it was today extended by two years until April 2028.
This will force more and more households to pay the tax as house prices and inflation continue to soar.
Any plans to cut the thresholds have been shelved until next year.
Shadow chancellor Rachel Reeves asked Jeremy Hunt if cutting inheritance tax was a “decision delayed or a decision abandoned” in the commons today.
House buyers
Another subject notably absent from today's Autumn Statement was stamp duty.
Stamp Duty land tax (SDLT) is a lump sum payment you have to make when purchasing property over a certain threshold.
The rate you have to pay as the buyer depends on the price and type of property you are purchasing and after reaching certain thresholds.
The current stamp duty cut means thousands of homebuyers pay less stamp duty but this will end in March 2025.
Before the cut, no Stamp Duty was paid on the first £125,000 of any property purchase.
That's now double at £250,000 for all home purchases.
Many experts and homeowners had been hoping for cuts but it appears these have been shelved until next year.
Winners
Drinkers
Boozers up and down Britain rejoiced today as Jeremy Hunt confirmed the price of pints and spirits will stay the same.
In a major win for The Sun's Save Our Sups campaign, the Chancellor confirmed a freeze on alcohol tax – and extended the business rates relief for pubs at the Autumn Statement.
Hunt gave a direct shout out to The Sun's campaign as he announced the pub-friendly measure, which will save Britain's boozers £4.3billion.
Beer bosses had warned the average pint in Britain could shoot up by 20p overnight unless Mr Hunt stepped in.
Benefits claimants
Millions of households on benefits, including Universal Credit, will get a payment boost worth up to £470 next year.
Jeremy Hunt has confirmed that benefit payments will increase in line with September's inflation rate.
The payment boost will come into effect in April 2024 and the average family on Universal Credit will be around £470 a year better off.
There were concerns that the government was planning to use a lower inflationary figure to uprate welfare payments.
The yearly inflation rate for September came in at 6.7%, compared to 4.6% for October.
Pensioners
Pensioners are also set for a bumper rise of up to £901 to their state pension payments.
It comes as it was announced that the pension triple lock will remain intact.
The amount pensioners get from the state rises every year in order to keep up with the cost of things like food and household bills.
Mr Hunt has now confirmed that payments will increase by 8.5% in April 2024.
That's because the triple lock system sees the state pension rise in line with whatever is highest out of: wages for May to July, 2.5% or September's inflation figures.
Not only that but Pension Credit standard minimum will also rise in line with July's wages data at 8.5%.
Plus, Mr Hunt announced he will consult on giving pension savers a "legal right to require a new employer to pay pension contributions into their existing pension".
This would allow workers to build up a pension “pot for life” under the radical new plans.
Drivers
Drivers can breathe a sigh of relief as the Chancellor did not hike Fuel Duty today.
Jeremy Hunt protected the 5p cut to the tax on motorists in his Autumn statement today — despite Treasury pressure to hike it.
That helped the chief bean-counter bat away calls from officials to cancel the 5p cut, with one source saying: “As ever there was internal pressure to raise revenue this autumn from fuel but Jeremy has said no.”
Thanks to The Sun's Keep it Down crusade, Fuel Duty had been frozen at 57.95p since March 2011 and temporarily slashed by an extra 5p in 2022.
Workers
Workers will get a £1,800 pay rise next year, the Chancellor confirmed in his speech.
As of April next year, the National Living Wage for those over 21 will rise from £10.42 to £11.44.
The increase was announced on Tuesday but confirmed again by the Chancellor today.
It's the biggest hike to the minimum wage for a decade and for the first time will apply to over-21s, rather than over-23s.
Meanwhile, self-employed workers will keep more of their hard-earned cash thanks to a major tax change.
Workers will get an income boost of up to £350 thanks to the abolition of Class 2 National Insurance Contributions (NICs).
Plus, the average employee is set to receive a £450 pay rise thanks to a two percentage point cut to the main rate of National Insurance.
Renters
Renters are set to receive a major boost to their housing benefits.
Chancellor Jeremy Hunt confirmed in his Autumn Statement today that the government will increase Local Housing Allowance for the first time since April 2020.
In his speech, he confirmed Local Housing Allowance will be increased to cover the cheapest 30% of local market rents.
This means anyone renting a home that is among the cheapest 30% of private rental properties in their area should be able to cover their entire rent with housing benefit.
The Chancellor has been under pressure to up the allowance by charities such as Crisis and Shelter, as well as private landlords and MPs.
Meanwhile, first-time buyers and savers are getting extra support under a few changes hidden in Autumn Statement documents.
And, we reveal all the Universal Credit and benefit changes announced in the Autumn Statement.
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