The Budget – What You Need To Know
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Here are the key points from today’s Budget…

Click here to find out here if you will be better or worse off…

How will these changes affect you?

Pay

  • National Living Wage announced for over 25 year olds starting at £7.20 per hour next year and rising to £9 by 2020.
  • Public sector – 1% pay rise
  • Increase in personal allowance tax to £11,000 
  • Only those who earn over £43,000 a year will now pay 40p higher tax rate

Welfare

  • Child Tax Credit – This will be capped at 2 children from 2017
  • Housing benefit – This will be scrapped for 18 – 21 year olds
  • Working age benefits – Frozen for 4 years

Tax

  • Income tax – threshold raised to £11,000
  • Corporation tax – 19% by 2017 then down again to 18% by 2020
  • Inheritance tax – property threshold raised to £1 million for couples (or £500,000 per owner the property)

Other things you may want to know…

  • Benefits cap to be reduced from £26,000 per household to £23,000 in London and £20,000 in the rest of the country
  • Increase in defence budget
  • NHS to receive additional £8bn per year by 2020 (in addition to the £2bn already announced)
  • Social housing tenants earning more than £40,000 in London and £30,000 elsewhere to pay rent at market rates
  • Working parents of three and four-year-olds will receive 30 hours of free childcare a week from 2017
  • Pensions tax annual allowance to be tapered away to a minimum of £10,000 from next year
  • Maintenance grants for students – paid to students with family incomes below £42,000 – to be scrapped and converted into loans from 2016/17
  • Fuel duties frozen for the remainder of this year
  • New cars and motorbikes will not need MOTs for the first four years, rather than three
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