Pensions
• The government will bring forward draft regulations to remove well-designed
performance fees from the occupational defined contribution pension charge cap,
ensuring that savers benefit from higher potential investment returns
National Insurance
• Reverse of the recent rise in National Insurance (NI) from 6 November
• Workers and employers have paid an extra 1.25p in the pound since April
• New Health and Social Care Levy to pay for the NHS will not be introduced
Corporation tax
• Cancel rise in corporation tax which was due to increase from 19% to 25% in April
2023
Income tax
• Cut in basic rate of income tax to 19% from April 2023
• Government estimates 31 million people getting £170 a year more
• Currently, people in England, Wales and Northern Ireland pay 20% on any annual
earning between £12,571 to £50,270 – rates in Scotland are different
• 45% higher rate of income tax abolished
• One single higher rate of income tax of 40% from April next year
Benefits
• Rules around universal credit tightened, by reducing benefits if people don’t fulfil job
search commitments
• Around 120,000 more people on Universal Credit to be asked to take steps to seek
more work, or face having their benefits reduced
• Jobseekers over 50 to be given extra time with work coaches to help them return to
job market
Trafford & Houghton - Blog 