How does the Spring Statement 2022 affect UK families?

The government’s Spring Statement was recently released for 2022. In this document, changes to National Insurance, fuel duty and income tax were all announced.

The main takeaways from this are:

National insurance threshold increase

The wage level of which national insurance contributions will be taken will rise from the current level of £9,880 to £12,570. This is now the same stage at which income tax is charged.

Income tax cut

From April 2024, income tax will be reduced from 20% to 19%.

Fuel tax

Until March 2023, there will be a 5p cut on fuel duty – this translates as a 6p price reduction per litre.

No changes to pension and universal credit

These will rise 3.1%, keeping them inline with inflation. The £20 uplift to universal credit was recently scrapped.

So far, no changes for support of early education have been announced, and early years settings have been excluded from the extension in business rate support that has been given to retail, hospitality and leisure.