The Budget – What You Need To Know

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?


  • 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


  • 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


  • 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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