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


Single, 25

Unemployed

Illustration of a 25 year old bachelor

2022/23 She receives a Universal Credit payment of £335 per month, which works out to £4,019 over the year. Financial assistance for housing costs depends on the property and where it is renting. She will also receive cost of living payments worth a total of £650.

2023/24 The benefit increase will be based on the September inflation rate; however, the government says UC claimants working less than 15 hours a week must show they are trying to get more work or risk having their payments reduced.


Only

Win £34,000

Illustration of a single man

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

November 2022 Canceling the 1.25 percentage point increase in NI dues means he will earn £22 a month.

2023/24 Reducing the basic rate of income tax from 20% to 19% will reduce his tax bill by £214, while changing the NI will be £268, saving him £482 .


Single, one child

Earn £6,916 working part-time (14 hours a week) at minimum wage

Illustration of single mother with child

2022/23 Her low income means she is not eligible for income tax or national insurance, bringing home £576 a month. This is complemented by a Universal Credit payment of £623 plus a child allowance of £87. She will also receive the £650 cost of living payments.

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


Unmarried couple in their thirties, no children

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

Illustration of an unmarried couple

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

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

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


Unmarried couple, two children, one of whom is disabled

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

Illustration of an unmarried couple with two children, one of whom is disabled

2022/23 Our couple have a combined income tax and national insurance bill of £3,466. Their monthly take-home pay of £2,122 is supplemented by a Universal Credit payment of £623 plus £145 Child Benefit. They will also receive the £800 cost of living payment.

November 2022 The NI change is worth £11; however, they will only increase by £5 per month as their UC will be adjusted.

2023/24 The basic tax rate reduction is worth £104 a year, while the NI change is worth £130. However, their annual UC will be reduced by around £120 due to their higher salary. 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 are up £46 per month.

2023/24 The income tax changes are worth £364 while the NI reduction is worth a total of £555 meaning they are better off by £919.


Married couple, two children

Both unemployed, one a full-time carer

Illustration of a married couple with two children

2022/23 The wife is caring for her disabled husband full-time, so they receive a monthly Universal Credit payment of £1,583 plus £145 child benefit. They are entitled to £800 in cost of living payments.

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


A married couple

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

Illustration of married couple

2022/23 Our top brass pay £102,388 a year in income tax and £16,473 in National Insurance. This translates to a combined monthly income of £15,095.

November 2022 The NI change means they are up £286 per month.

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


Single retiree

State basic pension

Illustration of a single pensioner

2022/23 His state pension is £141.85 a week or £567 a month. She also gets the pension credit top-up worth an additional £163. She will also receive £950 in cost of living reimbursement.

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 highest of three possible figures: inflation (in September), average wage or 2.5% in April.


Married pensioners, both aged 70

State pension plus private pension of £8,000

Illustration of married pensioners

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

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

theguardian Gt

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