Spring Statement 2022: Key points for the assistive technology sector
Rishi Sunak, Chancellor of the Exchequer, delivered his Spring Statement 2022 to Parliament on 23 March 2022, which brings together proposals to reduce and reform taxes over the Parliament.
The Spring Statement 2022 has been published in the global context of Vladimir Putin’s attack on Ukraine, which has created “significant uncertainty” in the global economy, particularly in energy markets, the UK Government says.
This tax plan contains three priorities: helping families with the cost of living, creating the conditions for private sector-led growth, and ensuring the proceeds of growth are shared fairly.
Below, AT Today has highlighted some of the key points from the Spring Statement 2022 for the assistive technology sector to be aware of, including changes to income tax and National Insurance.
Changing Places funding
The government previously made £30 million available to local authorities in England to install life-enhancing Changing Places toilets in existing buildings.
Spring Statement 2022 is allocating £25.3 million of the Fund to install over 500 life-enhancing Changing Places toilets, in public places and tourist attractions where users want them the most. This will increase accessibility for thousands of severely disabled people who need specialised facilities. An additional £6.5 million will be allocated to areas where there is little or no provision.
National Insurance changes
The Spring Statement increases the annual National Insurance Primary Threshold and Lower Profits Limit from £9,880 to £12,570, from July 2022. This is set to help almost 30 million working people, according to the government.
The government says that this change means that over two-thirds of National Insurance contributions (NICs) payers will pay less NICs, even accounting for the introduction of the Health and Social Care Levy.
Furthermore, Rishi announced that from April 2022, self-employed individuals with profits between the Small Profits Threshold and Lower Profits Limit will continue to build up National Insurance credits but will not pay any Class 2 NICs. Taken together, these measures will ensure that the first £12,500 earned is tax free for self-employed people.
Income tax changes
In addition, the government will reduce the basic rate of income tax to 19 percent from April 2024. This is a tax cut of over £5 billion a year and represents the first cut in the basic rate of income tax in 16 years, according to the Spring Statement 2022 policy paper.
Extending the Household Support Fund
To help households with the cost of essentials such as food, clothing and utilities, the government is providing an additional £500 million for the Household Support Fund from April, on top of the £500 million already provided since October 2021, bringing total funding to £1 billion.
In England, local authorities will receive £421 million to help deliver this support to people who need it most in their areas, and the devolved administrations will receive an additional £79 million in funding.