With inflation rising to 6.2% in February and against a backdrop of rising fuel, energy and food prices, the Chancellor Rishi Sunak delivered his spring statement on Wednesday focusing on four key areas: fuel, energy, NI and an increase in household support.
But what does it mean for ordinary families?
The average price of a litre of petrol has risen more than 40p a litre since last year’s spring statement, and diesel prices are up nearly 50p a litre, impacted heavily by the war in Ukraine. But as of 6pm today fuel duty will be cut by 5p a litre, which results in around £3.30 off the cost of filling a typical 55-litre family car according to the RAC.
The Chancellor has announced that he will be lifting the National Insurance threshold by £3,000. From July people will be able to earn £12,570 before paying income tax or National Insurance. However, the planned increase in National Insurance from 6th April will still be going ahead.
As energy prices are set to soar from April, the spring statement has announced that homeowners that wish to install energy-saving materials to their home will pay no VAT on the goods for the next five years. This includes plans such as insulation, solar panels and heat pumps.
Finally the Chancellor announced that the Household Support Fund for local councils to help the most vulnerable will be doubled to £1bn from April.
If you are worried about the rising costs of living, we will soon be releasing our top tips and guides on small changes we can all make to reduce costs – do keep an eye out for those.