The Spring Statement 2022 took place on Wednesday 23 March. Although we are already aware of some of the changes that are taking place in April this year, there were some additions as a result of the increase in the cost of living. 

Fuel duty – the cost of fuel has risen exponentially over the past couple of weeks but it was announced that fuel duty will be cut by 5p a litre for a full 12 months. 

Environmental – it was announced that the government will cut the VAT rate for households installing solar panels, heat pumps or insulation from 5% to 0% for the next 5 years. 

National Insurance – we are already aware of the planned 1.25% increase in National Insurance but it was announced on Wednesday that the threshold (before any National Insurance is paid) is being increased by £3,000 to £12,570 in July of this year. 

Basic rate band – the income tax rate for the basic rate band will reduce from 20p to 19p in the pound by 2024. This means that the amount of income tax you pay within this band will reduce by 1p for every pound. 

Given the widely publicised increase in energy prices, it may be a good time to review your energy contracts and see what is being offered on the market. 

It may also be helpful to have a go at tracking your spending and seeing where you can make small changes to make your money go further. Huw created a video on budgeting, which you can watch here. 

We hope that you found this useful and if you have any queries, please do not hesitate to contact us.