Things from The Budget that could end up costing us.
So the Budget the other day revealed some big changes coming our way over the next few years, if you missed it you can read all about these here. But there were some things the Chancellor didn’t go into too much detail about. And probably because he knew people wouldn’t be too happy once they started asking questions.
So here are some of the things in the small print that could see us having to shell out.
The abolishment of the help to buy scheme
The first announcement you may have missed is the abolishment of the help to buy ISA. This ISA appealed to hundreds of thousands of people when it was introduced last year as it seemed like a great help for first-time buyers.The scheme sees the government add £50 to every £200 you put into the ISA in a bid to help first time buyers get onto the property ladder.Now it has been announced that it will be abolished in 2019.
The Government is replacing it with the lifetime ISA instead.
Exit fee on a lifetime ISA
Everyone seemed to be a little confused about the new lifetime ISA being introduced. You can see full details on this here. The ISA is targetted to young savers and is a great way for them to start saving towards a home or their retirement. The Government will add £1 to every £4 saved until the age of 50. There are some things to consider before opening this ISA however.
If the funds you’ve saved are accessed for any other reason than to buy a house you will be faced with a catch. The bonus will have to be returned and a 5% charge will be implemented.
Money Advice Service comes to an end
The Money Advice Service is set to be abolished which will leave thousands of people not knowing where to turn for advice.
MAS will be closed with its pension guidance remit going to a new provider. There are also plans to launch a second body with a focus on providing “frontline” services to those in financial difficulty.