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<p>The Government announced further support at Autumn Statement 2023 to support the
most vulnerable: From 1 April 2024, the Government is increasing the NLW by 9.8% for
2.7 million low paid workers. Local Housing Allowance rates will rise to the 30th
percentile of local market rents in April 2024 for 1.6 million households. The government
will also uprate all working age benefits in full by September 2023 CPI of 6.7%, benefitting
5.5 million households in 2024-25. This brings the total support over 2022-2025 to
help households with the high cost of living to £104 billion – an average of £3,700
per UK household.</p><p> </p><p>As part of the Government’s long-term plan to grow
the economy and reform the tax system, employees will see their main National Insurance
Contribution (NICs) rate cut from 12% to 10% from January 2024 onwards, and the main
rate of Class 4 NICs for the self-employed will be reduced from 9% to 8% from April
2024. This is a tax cut worth over £9bn per year, the largest ever cut to employee
and self-employed National Insurance.</p><p> </p><p>Looking across all tax, welfare
and spending decisions made since Spending Round 2019, the impact of government action
continues to be progressive, with the poorest households receiving the largest benefit
as a percentage of income in 2024-25.</p>
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