What the chancellor gave the Jams … and what he took away

The gains and losses for the “just about managing” households in the 2016 autumn statement.

The gains

Universal credit The chancellor said 3m households will be better off due to changes to universal credits, which he described as a “targeted tax cut worth £700m from 2021-22”. From April, the “taper rate” on universal credit will drop from 65% to 63%. Effectively this means those on low incomes can hold on to an extra 2p in every additional pound they earn.
Minimum wage The “national living wage” will rise from £7.20 an hour to £7.50 an hour from April.
Personal allowances The starting point for basic rate tax will rise from £11,000 to £11,500 from April 2017, with a promise to raise it to £12,500 by the end of the parliament in a pledge first set out by George Osborne.
Petrol prices Fuel duty was frozen again, saving 2p a litre or £1.36 on filling the average tank.
Letting fees Renters will save around £300 each from the ban on fees to tenants, plus there was a total £7.2bn package in measures to support housing.

Work allowance This is the amount recipients of the universal credit can earn before their benefits start to be taken away, and Hammond continued with Osborne’s already-announced cuts. The £3bn in cuts far outweigh the £1bn giveaway from reducing the taper rate. A single parent with one child, earning £15,000 a year, will lose around £3,000 from the planned cuts, according to the Child Poverty Action Group.
Children Universal credit will be limited to two children from April 2017. Housing support for under-21s within UC will also be removed from the same month. Neither were mentioned in the speech, as they were announced in 2015.
Insurance tax The typical car insurance premium will rise by £10.70 a year, said the AA, after insurance premium tax was hiked to 12%. Buildings and contents cover will also increase in price.