To ask His Majesty's Government, further to the Autumn Statement made by the Chancellor of the Exchequer on 22 November (HC Deb cols 325–57), what assessment they have made of impact of the level of taxation on individuals struggling with the increased cost of living.
Answered on
30 November 2023
In recent years the government has taken significant action to support lower earners through the tax system. The significant increase to the NICs starting thresholds in July 2022 means that all workers can now earn £1,000 a month before paying any tax. A UK employee can earn more money before paying income tax and Social Security Contributions than an employee in any other G7 country.
At Autumn Statement 2023, the Government cut the main rate of employee National Insurance by 2pp from January 2024, as well as cutting and reforming taxes for the self-employed from April 2024. As a result of above-inflation increases to thresholds since 2010, and the Autumn Statement 2023 NICs cut, an average worker in 2024-25 will pay over £1,000 less in personal taxes than they otherwise would have done. From April, a full time National Living Wage worker’s take home pay will be 30% greater in real terms than it was in 2010, due to successive increases in the National Living Wage and changes to personal tax rates and thresholds.