Hunt’s income threshold freeze may see average earner £2,000 poorer

New Prime Minister Rishi Sunak and Chancellor Jeremy Hunt are scheduled to set out a bold economic vision on November 17. Many are worried about what the announcements could mean for them, particularly given the challenging economic circumstances.One policy which already exists is a freeze to income tax thresholds, up to and including the 2025/26 tax year which was first announced by then-Chancellor Rishi Sunak.New calculations have illustrated the stark impact this policy could have on Britons with wages growing.If wage growth is on average five percent per year for the next five years, but tax thresholds remain frozen, then someone earning £35,000 today will be £695 worse off by 2028/29 – and £2,016 poorer cumulatively over the five year period.Similarly, a person earning £50,000 today will be £3,403 worse off in the 2028/29 tax year, and £9,765 poorer over the five-year period.READ MORE: WASPI woman ‘only able to heat one room’ in home Rishi Sunak and Jeremy Hunt’s ‘stealth tax’ may see average earner £2,000 poorer (Image: Getty)The stark data was compiled by Quilter, which warned the policy could have substantial effects on Britons.Over the past 20 years, average wage growth annually has been close to three percent.But with inflation continuing to soar, it is expected wage growth will be higher in the coming years. Shaun Moore, tax and financial planning expert at Quilter, said: ‘These calculations illustrate the power of fiscal drag and how freezing income tax thresholds is a form of stealth tax.DON’T MISSPensioners may be eligible for £600 via Winter Fuel Payment this year [INSIGHT]Barclays issues warning as scams involving your purchases rise [ANALYSIS]Pensioner, 84, frustrated as state pension frozen at just £24 per week [UPDATE] Rishi Sunak and Jeremy Hunt are grappling with various economic issues (Image: EXPRESS)However, Britons do not have to remain totally powerless in the situation, according to the expert.In fact, there are some measures people may wish to consider in becoming more tax-efficient.Mr Moore added: ‘The new tax-year presents no better time to plan for efficient use of allowances for the tax-year ahead. ‘If you are unsure about where to start, a financial adviser can help you identify how to make better use of the tax allowances available to you.’While April may feel like a long time off it is worth starting to think about this sooner rather than later.’