In recent years, we've all faced some tough times. The pandemic, the conflict in Ukraine, and instability in the Middle East have affected our daily lives, making everything from groceries to energy bills more expensive. Despite these challenges, our economy is starting to improve, and if we stick to our plan, we can keep this positive momentum going.
Back in March 2020, when COVID-19 hit, the Government had to make the difficult decision of putting the country in lockdown to protect the vulnerable. This was a huge step that required a lot of Government support to help both individuals and businesses. We spent around £400 billion on this effort, including furloughing 11.7 million jobs and leading the way in vaccine procurement, approval, and rollout to tackle the virus head-on.
To help people get through these tough times, we increased financial support for those on Universal Credit, benefits, and state pensions. We also provided loans and support to businesses to prevent them from going under. These actions were crucial in keeping our economy going.
As the world began to recover from the pandemic, new challenges arose with the invasion of Ukraine. Energy prices skyrocketed, making bills difficult for many families. To help, the Government introduced the Energy Price Guarantee, capping the average household's energy bill at £2,500 a year. This provided much-needed relief as energy costs continued to rise, affecting food and other prices too. Fortunately, energy bills have started to fall again, thanks to our plan to keep energy costs down and secure Britain's energy supply.
The economy has now turned a corner and signs of a return to normal are showing. In October 2022, inflation hit a high of 11.1%, but thanks to proactive measures, it has now dropped to 2.3% as of April 2024. This means the rate at which prices are going up has slowed down significantly, bringing us closer to the Bank of England's target of 2%. Our economy is also growing. In the first quarter of 2024, the UK's GDP went up by 0.6%, making us one of the fastest-growing economies in the G7. This growth is the fastest we've seen in over two years and translates to more jobs and better prospects for people across the country.
As a result of this progress, it has meant the Government has been able to cut National Insurance contributions from 12% to 8%, putting more money back into the pockets of working people. This year, 29 million people will benefit from these tax cuts, with the average earner seeing an extra £900 annually and enjoying the lowest effective personal tax rate since 1975. This move ensures that people get to keep more of what they earn.
These improvements show that our plan is working. While there's still more to do, it's clear that sticking to our plan is the way forward. Together, we can continue to build on this progress and secure a brighter future for everyone.