Spring Statement 2022 - what you need to know
Published on:
23 March 2022
If you’re wondering how your household finances are going to be affected over the coming months, find out what the government has announced in its Spring Statement 2022.
National Insurance threshold increased
Although the previously announced rise in National Insurance Contributions (NICs) will still go ahead in April 2022, the threshold at which you start paying NICs will increase from this July.
At the moment, if you’re an employee, you can earn up to £9,570 (£184 per week) before you start to pay Class 1 National Insurance.
From 6 April 2022 this threshold will increase to £9,880 (£190 per week).
Then from July 2022, this threshold will increase to £12,570 (£242 per week) to match the standard personal allowance for Income Tax (currently £12,570 per year).
Basic rate of Income Tax reduced
From April 2024 the basic rate of Income Tax will reduce from 20% to 19% in England, Wales and Northern Ireland.
The Scottish government has yet to announce if it will cut its basic rate of Income Tax.
Rising energy costs
There was no further direct support announced for the rising cost of energy bills.
The government did confirm it would continue to give local councils in England money for the Household Support Fund which provides additional support for low income or vulnerable families and can be used if you’re struggling to pay for food, household bills or other essential costs.
If you live in England, contact your council to see if they have a welfare assistance scheme. Find help available in your area at End Furniture PovertyOpens in a new window
There are separate schemes available if you’re living in Scotland, Wales or Northern Ireland.
If you live in Scotland, find out more about the Scottish Welfare Fund at Scottish GovernmentOpens in a new window
If you live in Wales, find out more about the Discretionary Assistance Fund at Welsh GovernmentOpens in a new window
If you live in Northern Ireland, find out more about changes to the Social Fund at nidirectOpens in a new window
Find out more about the current support available in our guide If you’re worried about your energy bills rising
From April 2022, for five years, the VAT charged on energy-saving home improvements such as solar panels or heat pumps will be cut from 5% to 0%.
Fuel duty cut
From 6pm on 23 March 2022 until March 2023, fuel duty will be cut by 5p per litre, across the whole of the UK.
Help if you’re struggling with bills and payments
There’s a lot going on at the moment. It can be difficult to manage all the different bills and payments in our lives. Our quick, easy-to-use Bill prioritiser helps you understand which bills and payments to deal with first and how to avoid missing any payments.
Use our free Bill prioritiser tool now. You can also find ways to budget, cut costs and make the most of your available income in our guide Living on a squeezed income
