Martin Lewis has outlined the key points of Rishi Sunak's Spring Statement as well as his "initial and instinctive reaction" to the Budget.

The Money Saving Expert published his first thoughts via his official Twitter account following the Chancellor's highly-anticipated statement. 

The popular financial journalist followed the Spring Statement live alongside his team and are expected to release further analysis throughout Wednesday.

In his initial video, Lewis identified several main announcements that could affect your personal finances. 

Here are the Money Saving Expert's initial thoughts and what the budget will mean for you.

New National Insurance Threshold

National Insurance is due to rise by 1.25% which means that people will roughly be paying 10% in National Insurance under this change. 

However, to mitigate this, the Chancellor has announced a change to the National Insurance threshold and when you start making contributions.

At the moment, National Insurance payments start at £9600 a year and income tax starts at £12,600 a year.

From July, these two levels will be moved to the same rate "which is sensible," Marin Lewis said.

You won't pay National Insurance until you earn £12,600 from July which is £3000 more than right now and the saving on that is £360.

If you earn £9600, to £35,000, you will not pay any more or you'll even pay less national insurance than you do currently.

Lewis has identified that the breakeven point is £35,000 so if you earn more that, "the two measures are a loss for you".

In a follow-up tweet, the Money Saving Expert told his followers that he was "still double-checking" but those on Universal Credit could see half the gain from the increase in the National Insurance threshold.

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5p cut in fuel duty

The Chancellor said he would “stand by” households, and announced that fuel duty would be cut by 5p per litre for a year up until March 2023.

Lewis noted that this is still tied to the huge fluctuations in the price of a barrel of oil that we're seeing at the moment.

He also said that the situation in Ukraine is a more important factor linked to fuel the rise in fuel but the announcement will help to alleviate that pressure somewhat.

Lewis said: "It is 5p less duty going to the Chancellor and 5p more per litre going into people's pockets."

The financial journalist estimated that this would be roughly a £1 saving when filling up a typical tank.

VAT to be removed on home efficient energy measures

The Chancellor said that “thanks to Brexit” he could remove VAT on materials such as solar panels, heat pumps or insulation to help bring down energy costs.

VAT will also be removed on wind and water turbines. 

Mr Sunak told the Commons: “We will abolish all the red tape imposed on us by the EU.”

Lewis welcomed the move but noted that "it's not going to relieve anybody's short term with the huge hikes in energy costs we're facing" at the moment.

Household support fund

Rishi Sunak announced that he was doubling the Household Support Fund to £1 billion “to do more to help our most vulnerable households with rising costs” with “targeted support”.

While Lewis recognised that "none of this will totally offset the rise in energy will mitigate it somewhat".

He also encouraged those who are struggling to pay their energy bills and are on low income to get in touch with their local council.

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Income tax rate to drop to 19p in 2024

Mr Sunak said by the end of the current Parliament in 2024, the Government would cut the basic rate of income tax from 20p in the pound to 19p.

The Chancellor said that this is “fully costed and fully paid for in the plans announced today”.

Lewis told his followers that he didn't want to address this aspect of the budget too much since "it is a long time away and it ain't going to help anybody right now."