Chancellor of the Exchequer, Rishi Sunak announced his plans for a 'new economy' yesterday in his Autumn Budget.
He hopes it will 'level up' Britain as we recover from the coronavirus pandemic.
His measures included a major change in the Universal Credit taper rate, The Mirror reports.
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The taper rate taxes Universal Credit claimants on anything they earn over their base level of benefits and this will now be lowered to 55p.
Prior to this, claimants were taxed 63p in the pound, so this means they will now save around £9 a week.
An increase the minimum wage was also announced as well as the introduction of a new 1.25 percent Health and Social care tax.
This comes after the £20 top up to Universal Credit was removed this month while many saw their energy bill spike amid the crisis.
And Sunak warned that while income will rise for those on minimum wage, inflation could hit 4 percent by the end of this year as the cost of living continues to soar, with more households expected to feel the squeeze.
It means millions of households could see everyday items from the cost of a Christmas turkey to water bills and the cost of clothing surge with the cost of living.
Already the UK is feeling the pressure with retail shortages and supply chain crises fuelled by a shortage of lorry drivers.
Meanwhile, pensioners, who were hoping for a U-turn on the decision to axe the triple lock got no mention in the statement.
Instead, pay will rise by £4 to £5.50 a week for those on the full state pension – but concerns are rising as to weather that is enough to cover bills such as a TV licence and rising heating bills.
Elsewhere, there were also no measures to protect those from a 250% increase in energy bills – a move that will see some pay an extra £300 a year, on top of the £139 increase – next year.
Households were hoping for relief in the form of a VAT discount or an increase in the warm home discount – however, these have been written off.
But what does all that mean for your pay packet and bank balance?
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Along with the slight increase to the Universal Credit taper, Sunak also announced he would be increasing the cost of Buckfast, adding 81p to the iconic Scottish tonic wine, to cover alcohol tax.
Tax will also be increased for fortified wines as well as higher strength ciders.
But Champagne will see a tax cut.
