Over 30 million people are set to benefit from the increase to the personal allowance and higher rate threshold this month, as the Chancellor delivers on a manifesto commitment one year early.
Britain’s workers will also benefit from the biggest increase to the National Living Wage since it was introduced, rising by almost 5% to £8.21 per hour. This inflation-busting pay rise means a full-time National Living Wage worker will earn an extra £690 over a year.
The National Minimum Wage has also increased faster than inflation. This includes increases to £7.70 per hour for 21 to 24-year olds and £6.15 for 18 to 20-year olds, with workers in the retail and hospitality sectors due to benefit the most. Taken together with the National Living Wage rise, in total 2.1 million people are set to get a pay rise.
And a fuel duty freeze for the ninth year in a row and increases to work allowances in Universal Credit will go towards helping families with the everyday cost of living.