- Published
Families facing cost-of-living pressures are being offered some assistance, according to Chancellor John Healey.
uncertain
Families → publish → Healey
Price rises are forecast to accelerate as energy bills in particular are likely to soar in the new year.
asserted
bills → forecast → year
So, here's how the key announcements in his first Budget affect you and your money.
asserted
announcements → affect → you
Help with your energy bill
The chancellor has effectively revived cost-of-living payments, by announcing a £100 automatic payment made directly into bank accounts.
asserted
chancellor → help → accounts
He said that 20 million homes in council tax bands A to D in England will receive a £100 "Household Energy Payment", funded by extra tax on banks.
asserted
homes → say → banks
You can find your council tax band by looking on your annual bill, or by looking on the government's website, external - although that was struggling to cope with traffic after the announcement.
asserted
that → find → announcement
Administrations in Scotland, Wales and Northern Ireland will receive the equivalent funding, and they will decide whether to introduce the same payment.
asserted
they → receive → payment
This is designed to help with soaring energy bills.
asserted
This → design → bills
Tariffs linked to regulator Ofgem's price cap, are forecast to soar by hundreds of pounds a year, to an annual bill of £2,000 or more in January.
asserted
Tariffs → link → January
The VAT cut on electricity bills, which was introduced in October, will also be extended to July.
asserted
which → introduce → July
It was due to end in April.
asserted
It → end → April
Gas standing charges scrapped
Gas standing charges will be scrapped in England, Scotland and Wales, during 2027 "or as soon as possible after", the chancellor said.
asserted
chancellor → scrap → 2027
These fixed daily fees will be shifted onto the price of each unit of energy.
asserted
fees → fix → energy
The Treasury calculates that 60% of households will gain an average of £45 a year, with lower users gaining the most - but not until after the projected big rise in bills in January.
asserted
users → calculate → January
Higher users - in the biggest houses but also large, low-income families - will pay more than they currently do.
asserted
they → pay → more
The government wants to extend reforms to electricity standing charges later.
asserted
government → want → charges
Fuel duty help if you drive
The 5p "temporary" cut in fuel duty on petrol and diesel, introduced by Rishi Sunak in 2022, will be extended to July.
asserted
cut → drive → July
It was scheduled to be phased out from January.
asserted
It → schedule → January
It means drivers will still pay the levy at 52p per litre.
asserted
drivers → mean → litre
Motor fuel prices have risen sharply owing to the continued impact of the Iran war on drivers, with diesel having recently hit new records when it moved above £2 per litre.
asserted
it → rise → litre
The cost of filling a typical family car with diesel has gone up by around £30 since late February.
asserted
cost → fill → February
A tankful of petrol costs about £23 more.
asserted
tankful → cost → more
You can save £20,000 a year in cash tax-free after all
The chancellor has scrapped his predecessor's plans to reduce the annual amount people can save tax-free in cash in Individual Savings Accounts (Isas).
asserted
people → save → Accounts
Rachel Reeves had wanted the policy to encourage personal investment in stocks and shares.
asserted
policy → want → stocks
It meant, from April 2027, if you're under 65, you would only be able to save £12,000 a year in cash in an Isa, rather than £20,000.
asserted
you → mean → Isa
But that plan has now been ditched.
asserted
plan → ditch → ?
Instead, the government plans to create a new "Starter Isa" for first-time investors.
asserted
government → plan → investors
You may get a pay rise
uncertain
You → get → rise
Minimum wage rates will rise by 3.9% in April.
asserted
rates → rise → April
However, these figures mean, this time around, there's no progress on Labour's manifesto promise to narrow the gap in minimum wages between older and younger workers.
asserted
figures → mean → workers
For all workers, the ongoing freeze in the income bands, or thresholds, at which income tax is paid went unmentioned in the Budget.
asserted
tax → pay → Budget
But it means any kind of pay rise could drag you into a higher tax bracket, or see a greater proportion of your income taxed than would otherwise be expected.
uncertain
proportion → mean → income
Scotland has its own income tax bands.
asserted
Scotland → have → bands
State pension to rise
asserted
pension → rise → ?
The triple lock policy means that the state pension will go up in line with average wage increases, at 3.9%.
asserted
pension → mean → %
It means:
the flat-rate state pension for those who reached state pension age after April 2016 will be £250.70 a week, or £13,036.40 a year, up £488 on now
the old basic state pension for those who reached state pension age before April 2016 will be £192.10 a week, or £9,989.20 a year, up £374.40 on now
But some pensioners won't be taxed
The government had already committed to not taxing people who only get an income from the state pension.
The chancellor said this would be the case until at least 2030, as there will be a new Pension Tax Allowance, so pensioners with an income up to the value of the full new state pension will not pay income tax.
asserted
pensioners → mean → tax
Support to save for your first home
The First Time Buyer Isa has been in the planning stages with the government for a while.
asserted
Isa → save → while
Healey has confirmed that it is intended to replace the often-criticised Lifetime Isa.
asserted
it → confirm → Isa
Separately, he confirmed the Your First Home equity scheme to allow first-time buyers in England to buy a new-build home with a deposit of 2.5%.
asserted
buyers → confirm → %
It would provide them with a loan worth 20% of their property's value to help pay for the purchase.
asserted
It → provide → purchase
…and 4 more, not listed.
The Aporia
