Energy support and bank tax
Families in England living in council tax bands A to D will receive a one-off £100 Household Energy Payment in January, paid directly into bank accounts and funded by an extra tax on banks. A VAT cut on electricity bills is extended to July, while gas standing charges in England, Scotland and Wales are set to be scrapped and shifted onto unit prices. The 5p temporary cut in fuel duty on petrol and diesel is also extended to July.
Savings and wages
Plans by the previous administration to reduce the annual cash Isa allowance to £12,000 have been scrapped, allowing savers to continue putting up to £20,000 a year into cash tax-free. However, savings tax rates beyond existing allowances will rise by four percentage points to 24% for basic rate taxpayers and 44% for higher-rate taxpayers from April. Meanwhile, the National Living Wage for eligible workers aged 21 and over will increase by 3.9% to £13.21 an hour in April.