Autumn Statement 2023

2023 Autumn Statement

Autumn Statement 2023

The Chancellor of the Exchequer has presented his Autumn Statement 2023 to Parliament, Wednesday 22 November 2023.

Here’s what we understand so far…

The Living Wage is to have it’s largest ever cash increase to the rate following the Chancellor, Jeremy Hunt acceptance in the recommendations from the Low Pay Commission.  The current rate for those aged over 23 is £10.42 and this will increase to £11.44 per hour from April.  In addition to this the rate will also apply to those aged 21 and 22 for the first time next year.

The Minimum wage rate will also be going up as it is for the lowest legal pay for apprentices.  

  • Aged 18 to 20 will have an increase of £1.11 per hour and the new rate will be £8.60 per hour.
  • Aged 16 and 17, and the apprentices the increase will be £1.12 per hour and the new rate will be £6.40.

National Insurance paid by employees has been cut from 12% to 10%, taking effect from 6 January. It is currently charged at 12% on earnings between £12,571 and £50,271 – and 2% on anything above that.

This means someone on the average salary of £35,000 will save over £450 a year.

Pension Pot for life – is just about giving employees the right to choose which pension they join and where their employer pays their contributions. At present, employers are obliged to automatically enrol eligible new staff into a retirement scheme, chosen by the company. This requirement has resulted in tens of millions of small pension pots building up in the system, as workers move jobs and switch to their new employer’s scheme.

Measures to be outlined by The Chancellor in the Autumn Statement will give a worker the right to nominate the pension scheme that their employer pays contributions to — a similar approach taken by countries such as Australia.