Mini-budget 2022: what it means for you | Mini budget 2022

Free, 25

Unemployed

Single 25 year old illustration

2022/23 He receives a universal credit payment of £335 a month, which adds up to £4,019 over the year. Financial assistance with housing costs depends on the property and where it is rented. He will also receive living expenses payments totaling £650.

2023/24 The benefit increase will be based on September inflation. But the government says UC applicants who work less than 15 hours a week must show they are trying to find more work or risk having their payments cut.


Single

He earns £34,000

Single illustration

2022/23 He pays £4,284 a year in income tax, while his National Insurance (NI) bill is £2,839. This results in a monthly salary package of £2,240 per month.

November 2022 Canceling the 1.25pp rise in NI contributions means they will be £22 a month better off.

2023/24 The reduction in the basic rate of income tax from 20% to 19% will reduce his tax bill by £214, while the NI change amounts to £268, leaving him £482 better off.


Single, one child

He earns £6,916 working part-time (14 hours a week) on the minimum wage

Illustration of single mom with child

2022/23 Her low earnings mean she does not qualify for income tax or national insurance, receiving £576 a month. This is topped up with a universal credit payment of £623 plus £87 child benefit. He will also receive £650 towards living costs.

2023/24 He will get a pay rise when the minimum wage rises (currently £9.50 an hour). However, she currently works less than 15 hours a week, so she will be forced to do more or see her UC payments reduced.


Single couple in their 30s, no children

First income £55,000, second income £35,000

Illustration of unmarried couple

2022/23 Our couple have a combined annual income tax and national insurance bill of £22,034. This results in a combined monthly income of £5,664.

November 2022 The NI change means it will be £68 a month better off.

2023/24 The income tax changes are worth £601, while the reduction in their NI bill is £811, leaving them £1,412 better off.


Single couple, two children, one of whom has a disability

First income £23,000, second income £5,928

Illustration of a single couple with two children, one with a disability

2022/23 Our couple have a combined income tax and national insurance bill of £3,466. The monthly take-home allowance of £2,122 is topped up with a universal credit payment of £623 plus £145 child benefit. They will also receive £800 in living costs payments.

November 2022 NI change is worth £11. However, they will only increase by £5 per month because their UC will adjust.

2023/24 The basic rate reduction is worth £104 a year, while the NI change is £130. However, their annual UC will be reduced by around £120 due to their higher pay. The result is an extra £114 in their pocket.


Married couple, three children

An income of £57,000

2022/23 The breadwinner pays £9,976 a year in income tax and £5,214 in national insurance. This translates to a monthly income of £3,484 plus £61 child benefit.

November 2022 The NI change means they go up by £46 a month.

2023/24 The income tax changes are worth £364 while the NI cut is worth a total of £555 making it £919 better off.


Married couple, two children

Both unemployed, one a full time carer

Illustration of married couple with two children

2022/23 The wife is a full-time carer for her disabled husband so they receive a monthly universal credit payment of £1,583 plus £145 child benefit. They are entitled to living expenses payments worth £800.

2023/24 Their finances will benefit from the benefits upgrade, but otherwise there was nothing in this budget to help them. The government has not said whether cost of living payments will resume next year.


Married couple

First income £200,000, second income £100,000

Illustration of married couple

2022/23 Our travelers pay a hefty £102,388 a year in income tax and £16,473 in national insurance. This results in a combined monthly income of £15,095.

November 2022 The NI change means they go up by £286 a month.

2023/24 Our rich couple is much richer. The income tax changes, including the top rate cut of 45% on earnings over £150,000, is worth £3,254 while the NI cut is worth £3,436, meaning he is £6,690 better off.


Single pensioner

Basic state pension

Illustration of the single pensioner

2022/23 Her state pension is £141.85 a week or £567 a month. He also receives the pension credit top-up worth another £163. He will also receive £950 in living costs payments.

2023/24 It does not benefit from any of the tax changes announced. However, the state pension is subject to the ‘triple lock’, meaning it will increase by the higher of three possible figures: inflation (in September), average earnings or 2.5% in April.


Married retirees, both in their 70s

State pension plus private pension £8,000

Illustration of married pensioners

2022/23 Their combined pensions result in a monthly income of £1,624. Because of their private pension they pay £307 a year in income tax. They will receive a pensioner’s cost of living payment of £300.

2023/24 They will benefit from an annual increase in their state pension while the income tax change leaves them £15 better off.

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