Spring 2022 Statement – What You Need To Know

Chancellor Rishi Sunak presented his 2022 statement on Wednesday 23rd March 2022. The key announcements are summarised below;


  • Fuel duty will be cut by 5p per litre until March 2023


  • VAT cut from 5% to 0% for five years on homeowners installing energy efficiency materials e.g. solar panels, heat pumps, insulation etc.


  • Income threshold for which people start paying National Insurance will rise by £2,690 to £12,570 in July.
  • National Insurance contributions to increase by 1.25%. Employees will see their national insurance contributions increased from 12% to 13.25%
    Click here for an excel download to calculate how much more or less NIC you will pay
  • Basic rate income tax planned to drop from 20% to 19% in April 2024
  • State pension will rise by 3.1% from April 2022 from (£179.60 to 185.15 a week).


  • Employment Allowance giving relief to small businesses employer national insurance payments will increase from £4,000 to £5,000 from April 2022.
  • Due to the increase in National Insurance contributions of 1.25%, employers’ contribution will jump from 13.8% to 15.05%.


  • The chancellor said the OBR forecast that inflation would average 7.4% this year.
  • Local authorities will get another £500m for the Household Support Fund from April, creating a £1bn fund to help vulnerable households with rising living costs


For a more in-depth summary on the spring statement, please click here

For HMRCs Statement, click here