AUTUMN STATEMENT 2022: Key points at a glance for assistive tech professionals

Yesterday (17 November 2022), Chancellor of the Exchequer Jeremy Hunt presented his Autumn Statement to Parliament, detailing the UK Government’s tax and spending plans for the year ahead.

AT Today has outlined some of the key points from the Autumn Statement 2022 that the assistive technology sector should be aware of.

In 2024-25, the chancellor said that access to funding for the NHS and social care is being increased by up to £8 billion in a bid to protect high-quality frontline public services.

This includes £3.3 billion in each of the next two years to respond to the significant pressures facing the NHS. According to the chancellor, this decision will enable the NHS to take action to improve access to urgent and emergency care and get waiting times down.

In the UK Government’s news story about the Autumn 2022 statement and the £8 billion funding, it said the investment will mean “double the number of people” can be released from hospital into care every day from 2024.

Furthermore, £600 million will be distributed in 2023-24 and £1 billion in 2024-25 through the Better Care Fund to get people out of hospital on time into care settings, freeing up NHS beds for those that need them.

The remaining £4.7 billion of the overall £8 billion figure for 2024-25 for the NHS and social care will put the adult social care system in England on a “stronger financial footing” and improve the quality of and access to care. This includes £1 billion to directly support discharges from hospital into the community to support the NHS.

Importantly, the UK Government has decided to delay the rollout of the adult social care charging reform from October 2023 to October 2025 after “hearing concerns” from local government.

Local authorities are also being given more flexibility on council tax increases.

The government is giving councils in England additional flexibility in setting council tax by increasing the referendum limit for increases in council tax to three percent per year from April 2023. In addition, councils with social care responsibilities will be able to increase the adult social care precept by up to two percent per year. This means that local authorities can increase council tax by up to five percent per year in England without a vote.

The government states this will give local authorities greater flexibility to set council tax levels based on the needs, resources, and priorities of their area, including adult social care.

For over-23s, the National Living Wage will be increased by 9.7 percent from £9.50 to £10.42 an hour.

The chancellor also announced a £13.6 billion package of support for business rates payers in England, including for assistive technology firms. To protect businesses from rising inflation, the multiplier will be frozen in 2023-24.

Controversially, to raise funds, the chancellor has introduced tax rises of £25 billion by 2027-28. Based around “the principle of fairness”, all taxpayers will be asked to contribute but those with the broadest shoulders will be asked to contribute a greater share, according to the UK Government.

The threshold at which higher earners start to pay the 45p rate will be reduced from £150,000 to £125,140, while Income Tax, Inheritance Tax and National Insurance thresholds will be frozen for a further two years until April 2028.

Additionally, the most profitable businesses will be asked to bear more of the “burden”. The threshold for employer National Insurance contributions (NICS) will be fixed until April 2028, but the Employment Allowance will continue to protect 40 percent of businesses from paying any NICS at all.