How does the budget affect me?

BREAKING NEWS! Today the Government released what will be changing in the Spring Budget. So, how does it affect you?

1) The support with energy bills will be extended for an additional three months in England, Wales and Scotland.

2) The thirty free hours of free childcare given in England to those who are three and four will be extended to younger children when both parents are working. This will not start until April 2024 and will be phased in with "15 free hours of childcare for two-year-olds in April 2024, and in September 2024 for those aged over nine months, then 30 hours for all from September 2025." (BBC News, 15/03/23). Those families who are on universal credit “will receive childcare funding upfront, instead of having to claim it back. The maximum amount people on universal credit can claim for childcare is also going up to £951 for one child, having been frozen at £646-a-month per child for several years. It will be £1,630 for two children.” (BBC News, 15.03.23).

3) The tax-free limit that is currently in place on pensions over a person’s lifetime is to be scrapped in April. However, the annual allowance will stay in place but increase from £40,000 to £60,000.

4) The Office for Budget Responsibility expects the inflation rate to decrease to 2.9% by end of the year. This doesn’t mean before then we won’t see prices rise, as there are predictions that mobile phone and broadband bills are set to increase in April.

5) Currently people with disabilities are required to carry out a work capability assessment, which tests any work-related responsibilities in order to receive benefits. This will be scrapped and only the Personal Independent Payment (PIP) assessment will be taken.

6) Fuel duty was meant to increase to 12p a litre, however, this has been frozen again and a 5p cut will carry on for another year.

7) In August there is due a rise on alcohol and tobacco for duty. Yet, there will be a better deal for draught beer in pubs.

SOURCE: BBC NEWS, 2023.