5 Dec 2012
The following announcements were made in the Chancellor’s autumn statement today.
- £18billion has been cut already from benefits bill, the government is seeking to reduce the bill by a further £10billion over the next four years. Welfare changes announced in the statement will make savings of £3.7bn by 2015-16
- Most working-age benefits such as JSA, ESA, and Income Support will be capped at 1% each year for next three years. This will not affect carers allowance or disability benefits or working tax credits where there is disability component. (CPI inflation was 2.2% in September which is month that has been traditionally used as the level for rise in benefits)
- Child benefit has already been frozen 2013/14, it will rise by 1% for two years from April 2014
- Local housing allowance rates and housing benefit will rise in line with existing policy next April then increases in the following two years will be capped at 1%
- The basic state pension will rise by 2.5% in April
- Basic income tax threshold to be raised by £235 more than previously announced next year, to £9,440
- Threshold for 40% rate of income tax to rise by 1% in 2014 and 2015, from £41,450 to £41,865 and then £42,285
- Inheritance tax threshold to be increased by 1% next year
- ISA contribution limit to be raised to £11,520 from next April
- Ultra-fast broadband expansion in 12 cities including Aberdeen and Perth.