The Autumn Statement is expected to see a rise in tax rates, pensions, and energy bills.
Jeremy Hunt is expected to deliver his budget to Parliament this Thursday. The Economic Times is predicting £21 billion worth of tax rises, in an attempt to get inflation down.
This comes just days after Mr Hunt admitted that the NHS was about to collapse. However, he is not expected to announce any extra funding to prevent this.
More people will be paying tax, as the tax-free allowance is expected to be halved from just over £12,000, to £6,000. If you work a part-time job, you may now have to pay tax.
The average annual electricity bill in 2021 was £760, which was a £310 increase when compared to 2020. According to British Gas, the average bill this year is £1156. Cornwall Insight predict that the average bill could hit £2100 by the beginning of 2023. The Energy Bill Support Scheme is also expected to be dropped, which will only make this worse.
These increases have been a long time coming, as the war in Ukraine has forced energy prices up across Europe.
As inflation increases, wages have not increased at the same rate. Last year, the average wage increase (adjusted for inflation) was 5.2%, while this year it has dropped to 2.9%.
